How do I come to a good offer and finance this deal?

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Rick H.I saw Peter last week at Bill Tan's Arcadia REIAwesome language patterns about trading when you're trying to sell don't list it, try to buy something else for trade (IRC 1031)

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It hasn't had a tenant in it since May 2015, she left it vacant for sale. It has been heated and had the water on since. Would it be ethical to ghost advertise it with her permission BEFORE buying? To see the rate of response and interest in the property?As for comps, I have looked for comps to do the math myself but there no comps in the area, or maybe I do not know how to find them.Again, Thank you everyone for all your help. If there is anything at all I could do to help you, please pm me.

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Sometimes you have to do the deal in a way that makes sense in the financial situation you are in. If you can't close all cash, then maybe wholesale the deal to another investor and make some cash. Maybe find a financial partner.

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Just because someone implies that they are 'really motivated' doesn't mean a thing.You and the seller need to be clear about what their big problem is that your offer proposes to solve. If no big problem, the you gave no leverage. Since most sellers will not take kindly to you asking directly what they intend to use the cash for, you'll be more effective asking indirect questions that will help you determine the true plans. If their plans are to sit on a pile of your money sitting in the bank collecting 0.01% then you have a seller who just want want either security or to brag to friends and family about the cash. That is NOT motivated.@Brian Gibbons I was at Peter Fortunato's event this weekend. Where were you? Do you have a note with a good excuse?

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@Troy GravettPain point is good!You can DELAY taxes, not reduce taxesI love installment sales I compare them with a lump sum annuitySellers can get a payment monthly, and have that payment survive their death and miss probate with living trust planning. No tenants, no toilets, no lawsuits!@Montai Edwards

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Find out what she wants the cash for. Cash is just an intermediary for something else. Find the pain point and structure the deal around that. New car, vacation, send grandchildren to college? Build rapport and become somebody she trusts. If she's just planning on putting it in the bank or a CD, show her how you can structure a better return for her on an installment sale and help her reduce taxes.

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The first thing I would suggest is understand why the seller is motivated. Why is she selling? Why does she want all cash? You can ask questions, in a way that is not too intrusive and asked showing genuine concern. If you can understand the seller's needs, you can be a problem solver and maybe negotiate a lower price creating a WIN-WIN Situation, for everyone. As far as calculations goes, you need to have a Realtor or yourself obtain, at least three comps, of similar homes that recently sold. If you have a mix of layouts such as a 3/2, 3/1, 4/2, etc. take the sales price and divide it by the total square footage, of living space. This will give you dollar per square foot. If you know the subject property's square footage, of living space, you can work backwards to calculate the home's value based on the comps. Do not use Zillow or other Real Estate Valuation Websites. These websites provide guesstimates regards a home's value. I would make an initial offer, of less than full value. Of course, I would expect the seller to make a counter offer, but this gives you room to negotiate.

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Maybe you could tell us a bit more about property, neighborhood, general market conditions. If so, you might get more helpful responses.

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Montai Edwards if she really wants a cash payment, negotiate a good price for wholesale.

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offer price = NOI / cap rate. find out what your net operating income will be ( income - expenses) and what the cap rate for the area is ( think of it as a percentage, how much will the property bring you vs what it will cost you) is 8% or 10% profit acceptable to you?, so divide the NOI by .08 or .10 - this percentage is better than being in the stock market. make sure you run comps in the area, what are other houses getting for rent and what is the sale value of those homes.