I got a call from a guy who had seen my sell your house fast ad listing before.
He is an out of city owner, said he wants to get rid of his property because he is leaving the city and he want to at least break even on the property.
The house is a Triplex, only one unit occupied presently and the house is in a good condition
According to the city its worth $276000.
Currently he doesn’t have a price but will get back to me before Friday.
He tried to sell earlier to an investor, he asked for $285000 but didn’t hear back from the investor.
ARV will be around $310000
I told him if he wants to sell the house quick he would need to sell below market price.
I will be inspecting the house on Friday.
I want to do a Highest Bidder sale for this property.
I am thinking I can get the house between $255,000 to $270,000 with an option and would probably sell for $290000.
I would appreciate any suggestions from you guys.
the lowest price is not necessarily the best deal. And buying a $310,000 property for $260,000 is not that good of a deal. For a cash offer the price needs to be lower.
You should always make an offer to buy at a higher price with a lot/no down and monthly payments. There are a lot of tax advantages for the seller if they accept this offer too.
If they cash out of an investment property, currently they have to pay 20% capital gains tax + 2.8% obamacare tax(if sales price is over $250k) + depreciation recapture which can be significant.
If they sell with seller financing those expenses can be spread out over 30-40 years so they are hardly felt.
There’s an advantage to you too. You may want to keep the property, so you can buy it without getting a loan.
And, it makes it much easier to sell because you can offer seller financing to your buyer so you’ll get a higher price plus a nice down payment plus monthly cash flow.
Always make at least 2-3 offers. Only 1 should be a super low cash offer. The other offers should be buying with seller financing.