Off Market Property Found...NOW WHAT?!?!?

[Travelle Mason]

I recently got in contact with the owner of a duplex that I've had my eye on for a year or so now. 

He's interested in hearing my offer, however, to date the few properties I have acquired have been on MLS with an agent. This approach with an agent won't work, the margins would be too thin. However, I intend to have a professional help me complete the transaction.



Now what?!?!

I understand the best approach is to seek to solve his problem, or problem with the property, but the likely first question will be 'what's your offer?'. 

What are the talking points to stick to? I'll need to know current rents and deferred maintenance, but I'm not sure how open he's willing to be. 

Open to your thoughts!

Travelle

[Jaron Walling]

@Travelle Mason As an investor that's purchased off market before the best advice anyone can give is to avoid talking about numbers. Until you build a rapport with the seller you have nothing. I'd assume you have since it's been a year of "talking" with them. If they're unwilling to build rapport it's not a good sign. Without finding motivation to sell investors have nothing. 

Real estate agents do this for a living. You have do this yourself. Obviously property condition plays a HUGE part in this (which is leverage on your part), but there's nothing stopping a seller from shopping around. Don't let them shop around but don't waste time. You have multiple strings to pull when making an offer. Inspections, no inspections, quick closing, helping them with moving expenses/ cleaning out the property, so be more flexible than a regular buyer. Everything is negotiable. Maybe they're interest in a sub 2 deal. You don't until you ask the questions. 

Negotiation 101 - try to get a number from them first. This is basic knowledge but people slip all the time. The sellers expectations could way higher than yours. Maybe yours is way too low. If you can't roughly estimate a rehab, don't know the ARV for the property, or can't run numbers quickly for cash-flow you better do all that before making an offer. If the seller is playing hard ball. you can't claw back $$$ because you offered to high. That was a rant but negotiating and finding good opportunities is exciting. Finding and solving peoples problems is exciting. I hope you find success with the property!