All Forum Posts by: Katherine Roberts

Is the reason you want to pay 50% because the value of the house is 50%, or you dont have more than 50  to invest.

THink about this- If the seller listed this $170 house for $140K, would there be a whole bunch of buyers?  If yes, then why would he accept your $85?  50% off is a huge range to reduce the home- Sounds like its a waste of time (from my perspective) to offer that low. 

If they are severely overpriced, try it, but if the value is close to their list, there is no reason for them to take your offer.

Also- did you look up to see how much they owe? They wont take less than their loan...

@Katherine Roberts

just to address one aspect in your post - you're saying "it would cash flow if I could buy it for way less than what the sellers are asking."

well........... that applies to tons of properties.  so - doesn't sound like a deal to me.  next!

Hi everyone,

My neighbors house has been sitting empty for 2+ years. He's passed, bank is selling open market. 2/2 otherside of the wall from my twin home. 

It's outdated but listed at "Move in ready" judging from the yard when we moved in, consensus of neighbors and listed photos it's most likely in good condition after some cleaning. 

The pros - sitting on market since April - they listed extremely above market and still needing to come down. 

owner would occupy the other side and familiar with condition of home (at least structurally on my side)

Great neighborhood, mixed value homes from 1980s, some being updated. Affordable due to lot conditions (small hillside) and townhome/duplex style layout. 

Shortage of rental housing available. Comps around 1600. 

Cons - no idea how to get there from here.

Is it better to risk the equity and great interest rate on my home by refinancing and putting the funds into another home mortgage, or finding a way to find a cash buyer to deed property from - possibly losing the opportunity but not holding as much risk.

This would be our first deal made on a house intended for income property ( we would eventually move into this side and use our 4/2 for the rental) the fear to jump is kicking in, not sure if this would be the right time or wait until we have some cash savings to find something...

Any info is greatly appreciated!
  

If you do this for a repair hold back then it is a 'seller credit' on the closing and typically there are limits on how much as a % that can be. This is a very traditional way of making an offer, and your agent should be familiar with the way to write this up. I did one for a septic decommissioning on a home I sold. The $2,500 was included on the closing as a credit and then the work was completed after the closing due to timing etc. 

What you're mentioning sounds like you may have seen a Pace Morby "Morby Method" video. I've said it before and I'll say it again, there is no way to do that transaction as he outlines it and it not be mortgage fraud. You can do what I described above, or get a purchase plus rehab loan to accomplish your goal. But getting the seller to kick the funds back to you outside closing is mortgage fraud. 

 It is not worth any risk. You can find a better  opportunity....

Are you sure there is a profit in there? Seems tight. I assume you've done your spreadsheet and the numbers really work after you've figured in all of the expenses, including taxes (property and I'd figure income taxes as well?)

@Katherine Roberts don't be afraid to offer below asking. What's the worst they can say? No? 

If they say no then you move on to the next property. 

Someone once said if you aren't embarrassed by your offer then it's not low enough. 

Of course, it's a more competitive market so lowball offers are becoming less common. But, if a property has been sitting don't be afraid to submit a low offer.