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Hi All.
I posted this in another forum area but this may be a better place.
I’m just starting out and this home is in Mobile Al. I live in the an adjacent community.
I just received my first call on my craigslist ad. This seller has a home she lives in that she inherited from her father 3 years ago. It is free and clear except for a $10,000 line of credit.
It has been listed for 2 months and she has had two offers but the buyers could not get financing. She is hoping someone can buy soon. She will spilt the proceeds with a sister and then buy a mobile home. The home will be worth about 120K after 10k in repairs – mainly paint and flooring. ( this is preliminary info from our phone call).
I think she has talked to other “I buy houses” guys who have given her a low cash offer.
I am not certain of course if she will agree but I would really like to come up with 2 offers to give her. She cannot keep up with the taxes and large home insurance costs. (we live on the gulf of mexico and have very high insurance)
I’m also wondering if she would be hit with a big tax bill if she received all cash.
What about a chunk of cash and seller financing.
Thanks in advance for any advice!
CarrieCarrie
This is an ideal candidate for a highest bidder sale.
Ask her what is the least she would take if she got paid in 30 days.
After she gives you a number, ask her, is that the best you can do
You may need to ask, is that the best you can do again.
Tell her that you?d like to write a contract for that amount but you will be selling to one of the cash buyers on your private investor group list.
You would need to do a 1 day open house for only 2-3 hours. All investors would look at the house then submit a bid to buy it. The house will be sold to the highest bidder.
Then the conversation can go in two directions:
1. Tell her that if the house sells for $1000 more than your contract price, that will be your profit. If the house does not sell for at least the contract price, then she will have the option to reduce the price or bow out of the deal.
2. If she is resistant to the whole idea, switch to plan b where you tell her that anything the house sells for over the contract price, you will split it with her 50/50. So, if the contact price was $100,000 and the house sold for 130,000 to the highest bidder, she would get $15k and you would get $15k
Explain that there will be some marketing expenses but you are so confident that the house will sell with this method, that you will put up all the money for the marketing.
I highly recommend that you contact Hank Baltar to help with this deal. He has experience with a Highest bidder sale, lives close by and has all the signs and paperwork to do the deal.
If you have not already done so, read the highest bidder sale manual.
Let me know if you have any other questions
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