Rental Property Investor · Pensacola, FL · Member since 2017 · 64 posts · 14 votes
Hey all,
I'm hoping someone could offer advice on a deal. At this point it's at a stalemate. The seller is firm but it isn't a viable deal for me. Here are the deets. It's turnkey, may need some touch ups but nothing major.
ARV $185k
Seller is firm at $100k cash and $55k financed 30yr 7yr balloon
Rented for $1200
This isn't quite enough of a deal for my partner and I, but would be at around $130k. I know I haven't given a whole ton of details here and you haven't seen the property... but I'm curious to hear anyone's advice on what to do when a deal is close but not a deal quite yet. I know there are many options and creative approaches one can take so I'm tossing this out in the hopes that the light bulb goes off. There may be one or two tweaks that'd bring it in line.
Lender · Scottsdale, AZ · Member since 2017 · 106 posts · 75 votes
8y
Offer more cash and take him away from having to finance the $55k. So perhaps a counter at your $130k cash and no financing from the seller. Other financing can be structured without involving the seller having to carry.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
8y
My take is you are putting too much cash into the property. Most investors want leverage and positive case flow. Most try no down, VA, FHA...…. If you don't get it that is fine. May be 3 months later it is still on the market you make an offer then.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
8y
Nick,
Negotiate a lower interest rate on the $55k. Have the seller pay for all closing costs. Backing off seems like a good idea. If the seller had better offers that allowed them to not finance the deal they would have taken it.