Meeting with motivated seller - Advice needed

[Angelica Osusky]

A young motivated seller recently reached out to me. She is looking to sell her home asap due to a bad break up. It is a 3bd 1ba small ranch home they bought it last year for 120,500 & have a balance of around 80k left. I am going to look at it next week. I am unsure of the current condition of the home as she does not live there anymore and told me her ex is 'trashing' the home. She said they are both willing to sign the papers. She did state she would like to get a little more than the loan is worth but understands I need to make money also.

Any advice on things I should make sure I do, ask, say, etc when I go meet with her and see the home next week? I am a new investor so any advice would help! Thanks in advance:)

[Joshua Rottenbacher]

Hi Angelica,

You already have everything you need. You have a motivated seller and numbers to work with. I would run those numbers, check comps in the area and see what your Max Allowable Offer (MAO) is. Numbers don't lie and that will give a clear line on whether to continue or pass. I know it seems pretty obvious but I would make sure she is the actually owner of the property (Check tax records). Second when you walk through the property note any damage or potential issues with the property that you can use to lower the price. You don't have to be a Contractor to notice a crack or bad paint job, or visible damage. Third, I would come prepared. Have comps of the area showing what house sold for recently, go for the low end. Be confident in your presentation and negations. Once you get the contract signed then you can worry about doing the due diligence. Be sure your contract has a mutual cancellation clause or something to make sure if the deal goes bad or if you can't find a buyer you can walk away. I'm not a Lawyer so I would seek out a Real Estate Attorney in your area. I hope this information helps.

Full disclosure I am a new Real Estate Investor myself.  These are the tips and suggestions I got from professional Real Estate Investors. 

Best of luck to you on your deal Angelica!

Sincerely,

Joshua Rottenbacher