Need help with offers for this new deal

[Erik Jason]

I just got a call back from a probate letter I mailed. Spoke with the son, his mother recently passed away, he just wants to sell the house because he doesn't want to be a landlord. He was just getting ready to put it up for sale as a FSBO when he got my letter, so he called me first.

I haven’t gone to see the property yet, but he says it’s in good condition; just needs cosmetic clean up (like painting). The house was built in 2000, she was the original owner, and no major repairs needed that he’s aware of (HVAC, plumbing, electrical are all good). The roof is probably in need of repair/replacement if it’s original to the house. He lives in the same area and visited her regularly, so he probably would know if there were any major problems. The house is paid for free and clear, no outstanding mortgage.

So far so good, but the problem is that he wants market price for the house. I’m not sure how he came to his price, but it’s definitely retail value. I don’t know what his plans are for the proceeds from the sale. So, I need some help with how to approach making discounted offers.

Owner financing? Are there any other options? Since there's probably not much value add here, this would likely be a buy and hold rental for me.

[Ben Wilkins]

@Erik Jason - is this a SFH or a MF?

The best way to tailor an offer to an individual seller is to find out two things:

• Reason for selling
• What they are planning to do with the money

Since you know the first, offer to meet him for coffee and ask some questions about what his plans are. Be honest (and persuasive) with your intentions: you want to win in this deal, but you also want him to win. 

Does he want a chunk of change to buy something in the near future? Chances are, you'll have to give a hefty up front down payment either through conventional financing or some other creative method.

Does he want income per month, but he just doesn't want the headache of landlording? Cha-ching! Go for an owner financing, and tell him that he'll make interest on his money by lending to you rather than letting the bank earn the interest through a mortgage. You can maybe lower the purchase price by showing him the end number that he will receive due to interest.

Find out what his plans are for the money, and tailor the financing from there. There is a lot of creative financing that can work in order to help both sides win.