All Forum Posts by: Daniel Lemp

@Kevin Sobilo Thanks so much for the response. So for example, a seller owes $200,000k on a house that is worth $250,000. They ask for $250,000 and I want to negotiate. I know that I can't reasonably offer below $200,000 because they can't or won't sell for less than $200,000 because doing so would mean they actually lose money when they sell the house. 

But if I'm a crazy negotiator, I offer $190,000 and they accept, they actually have to pay $10,000 out of pocket to get the house off their hands.

Am I understanding that correctly?

Hey everybody, I'm brand new to real estate and I'm just learning about investing. Please forgive a really, really basic question, I'm just learning

I read that when considering an investment property, you need to know how much is owed on the house and how much equity the seller has. I read in one article that you should consider this moreso than the asking price.

Why do you need to know this? What impact will it have on me if the seller owes a lot or owes only a little on the house? How does that change my negotiations and what I will have to pay in order to own the house? Is it because I need to know what their baseline price is in order to be able to pay off their mortgage after closing, so I know what number they really couldn't go below?

Thanks everybody!