All Forum Posts by: Eric Bousquet

Originally posted by @James DeRoest:

Originally posted by @Eric Bousquet:

Originally posted by @James DeRoest:

Originally posted by @Eric Bousquet:

Hello everyone,
I've been negotiating a deal for a distressed property and the seller has countered my original offer with what they claim the "land is worth".
Even at that price the deal isn't a dog but before I come back with anything I'd like to be able to verify what they claim.
Is there a way for me to see what the land is valued at?
Any help would be greatly appreciated.
Thanks!

Eric

Property appraiser online will tell you the value of the land. Should be broken down as Land and Improvements.

Is that through the town?

How do you mean? If it's anything like my county (and the surrounding ones), just go to the local property appraiser website, key in the address, and it's the first bit of information they give you.

That's what I was wondering. I had an agent who would do this stuff previously and they had access to this type of info. I wasn't sure if it was available without a RE license. 

Originally posted by @James DeRoest:

Originally posted by @Eric Bousquet:

Hello everyone,
I've been negotiating a deal for a distressed property and the seller has countered my original offer with what they claim the "land is worth".
Even at that price the deal isn't a dog but before I come back with anything I'd like to be able to verify what they claim.
Is there a way for me to see what the land is valued at?
Any help would be greatly appreciated.
Thanks!

Eric

Property appraiser online will tell you the value of the land. Should be broken down as Land and Improvements.

Is that through the town?

Hello everyone, I've been negotiating a deal for a distressed property and the seller has countered my original offer with what they claim the "land is worth". Even at that price the deal isn't a dog but before I come back with anything I'd like to be able to verify what they claim. Is there a way for me to see what the land is valued at? Any help would be greatly appreciated. Thanks! Eric

Well, I spoke with the seller and they rejected my initial offer of $30K. They countered with what they claim the land is worth; $47k. I countered with $40k and explained that was my best and they wouldn't budge of the $47k.

I explained I don't think I could make it work but I'll take a look and if I can I'll be in touch otherwise I wished them good luck. 

   At $47k the deal isn't a dog but I'd like to confirm that the land is indeed worth that before I come back with anything. 

So what I need to find out Is there a way to look up the value of the land alone?

They may be mistaken and I'd like to know before I counter again. 

Any help would be greatly appreciated.

Originally posted by @Chris Severin:

Originally posted by @Eric Bousquet:

I'm interested in this topic as well. 

I've actually spoken with a hard money lender who claims he would be able finance a property long term (25 yrs w/ 5yr ARM) but I'd like to be able to refi after 5 if possible.

 Shouldn't you be able to refinance after one year? You could beat some of that high interest, at least I've read books that say you are eligible for refinance after one year.

I'm sure I could logistically. But my issue is being self employed. 

I'd hope that when the property is finished and re-appraised the equity would be at 40%.

I've never refinanced a property before and the 5 yr ARM gives me the time to sort out the possibilities of a conventional loan. At least that's my plan. :)

Originally posted by @Rob Beland:

Can somebody @Ann Bellamy  please explain why hard money lenders only lend to business entities and not people? I'd specifically like to hear about any Massachusetts laws/regulations. Thank you. 

 Hey @rob Beland,

   I'm currently working with a hard money lender for a deal here in Wetern, MA and there's no issue on his end lending to me in my name. I'd b happy to give you his name if you'd like.

Would Anyone suggest calling them back if I don't hear back with a "couple days". 

I'm interested in this topic as well. 

I've actually spoken with a hard money lender who claims he would be able finance a property long term (25 yrs w/ 5yr ARM) but I'd like to be able to refi after 5 if possible.

Originally posted by @Sonia Roberts:

I would suggest in the future to have the paperwork filled out and ready to be signed, any changes are easy enough.  The problem with giving them time is now the very real possibility that they will shop for another investor and they know some of the numbers.  I hope it works out in your favor since you did quite a bit of due diligence.

Good Luck

 Thank you for the input Sonia. 

I thought the same thing at that very moment. In the future I won't make that same mistake again.

I'm hoping that since they've been trying to sell it for some time that they at least counter if they don't accept. 

Well, I had a meeting with the sellers last night. 

I brought a breakdown of the costs that I would incur taking on the property and the extensive work it will need to be able to be sold at market value. 

I wanted to present a thorough and honest look at what is involved in acquiring and flipping a property in the condition this one is in. In case they had any predetermined opinions on "flippers". 

I offered $30K

I also showed them the breakdown of repairs in my spreadsheet along with the breakdown of all overall costs and the comps I used to come up with the ARV.

They had some questions and made it known they believed the land alone was worth $40k. To which I explained that it's not in it's current condition with the house and the septic system occupying it.

   They saw my loan coast and appraisal fees in my cost breakdown so I explained it was a "cash" deal even though I am leveraging the property with a hard money lender. Since once we agree on the price there are no coditions that they need to meet. And that I was fairly confident we could close in 3 weeks. 

I assured them that if they accepted the offer they could just walk away and never lift another finger in regards to the property and move on with their lives. I also assured them that our goal is to bring the house back to it's former beauty and to help raise the value of the neighborhood. That we wanted to create a home for another young family so they can raise their children and make their own memories just like they had with their mother. That sitting in it's current condition, deteriorating isn't doing the home justice. 

For a moment I thought they were going to accept the offer after we talked about what needed to be done and that I would take care of all the paperwork no all they had to do wS show up for the closing. They even asked if I had the written offer with me...which I did not. I'm not sure if that was a mistake or not...

But, then they asked if they could think about the offer. If they could get back to me in a "couple days". I said "of course", that I realized it was an emotional decision so I completely understood. 

I have my fingers crossed. I'm hoping if they don't accept they at least counter.

Does anyone have any opinions on how I approached this offer? Any feedback would be greatly appreciated.

Thanks!