How to start talking money?

[Tony S.]

I've been making some cold calls these past few days, and have had a pretty good response. I am going to view a vacant house this saturday at noon. I drove by this house a few times and decided to give the owner a call. He seems motivated to sell.

My question is, how do I go about bringing up the money portion of it when I am there with the owner checking the place out?

I will most likely be bringing a more experienced accomplice with me to help estimate the remaining rehab costs (house is about 40% done at the moment).

What have your experiences been with negotiating prices in a situation like this? Should I ask him how much he wants and go from there? Should I go right out and make an offer (I'll give you $X,XXX for the house)?

My other question is, I should have a contract with me at that time ready to go and complete with the seller (assuming we come to an agreement)?