Another deal for you all to look at..

[Travis Elliott]

I got a call two day's ago from a lady who was very frantic. I had given her boyfriend a business card several months ago so she gave me a call in order to git rid of her rental home.. She is not a LL by choice and she is experiencing the bad side of the business.

She wants 50,000 for this 3/2 home. Current rents are 400 and it has a new roof and a super high efficiency furnace. I checked the home out this afternoon. Later I called her and offered 25,000.

Well this wasnt what she wanted to hear. She talked about coming way off the 50,000 price but not this low.

So I am wondering where to go from here.. I really want to buy this on a contract, the home is paid off. She wants more money than I offered and is thinking of going to South America in a couple of years.

My thought is to make a new offer to her buying it on a contract with a two year balloon. With the rents only being 400.00 a month what would you suggest that I use as an offer.

I am open to creative ideas here.

Thanks Travis

[Travis Gosnell]

My advice would not to do anything less than a 5 year balloon unless you can get a better discount. I assume that it's free and clear and if so why not giver her up to 5-8k down, principle only payments of $250/month until paid. Example offer 41k, 5k down, and $250/mo for 144 months. And contrast that offer with your most expensive offer of all cash for 25k.

Be sure not to just be a numbers guy but BUILD VALUE...harp on what this will do for her and how it will help her get to South America and solve all of her challenges. Walk through and explain the transaction costs of a normal sale and the days on market, average buyer's discount, agent commission, etc. Also explain how she has to sell with a tenant which is sometimes even more challenging.

Good luck