Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago,

Account Closed
72
Votes |
162
Posts

How to make this low offer??

Account Closed
Posted

OK. I have spent the last week mapping out my plan to get started. I have a goal to purchase my first property by the end of August. I have been watching a house that has been for sale by owner for at least 6 months. I called and was able to get permission to access it from owner a few weeks ago. 

It is a 3 bedroom/1 bathroom 50's cape. Nice, rural area about 10 mins from town. New roof, new windows, new vinyl floor. I am accounting $4900 for replacing the heat pump as it is quite old and it needs all appliances. The layout of the bedrooms is funky (probably is really a 2 bedroom originally) as you have to walk through one bedroom to get to another. This can be fixed up better with a few 2x4's and some sheetrock eventually. I can do this.

Anyway, it was previously listed on MLS for 80ish almost 2 years ago. The owner is elderly and living with family now. Has owned it for 50 years. Son is taking the calls and is an inactive, licensed agent. Super nice guy on the phone. Price is now 70K.

I made this spreadsheet and am attaching an image. I'm wanting to explore owner financing (with $7000 down) but also need it at more than a 50% discount to make the numbers work. I'm thinking of writing a letter directly to the owner but am nervous about offering 32K for a 70K asking price AND trying to get owner financing. I understand the worst they can say is no but want to keep the dialog open. I am currently unable to meet them in person as we are traveling for the next 3 months for work. I imagine it will still be there when I get back.

Here are the numbers: https://imgur.com/a/wNJmGng

Thanks everyone for any input.

Loading replies...