All Forum Posts by: Mark Beno

@Steven Stokes  Well said, Steven.

@Account Closed Thanks, Rod. Great advice, to 'Simplify.' I will do this.

Mark

@Tyler Warne Thanks Tyler. That's good advice. I'll try to use it next deal.

Mark

@Russell Brazil Thanks Russell. Yes, I would need to find out their motivation for sure. I'm trying to figure out if Opt 2 or 3 is better, and if they make sense, before I actually try them out.

Hello BP nation!  I need help with understanding and submitting a good offer, in general. First of all, I'm in NW Atlanta OTP.  I've read on BP that you should provide different options when making an offer to a homeowner. Assume the lead came via a postcard, and the owner called me. Here are the details on a house I'd like to buy and hold; I'm using round numbers for ease:

Property is 3/2 brick ranch sfr, built in early 1960's, with ARV = $100k

Updates will total $10,000

Applying the 70% of ARV formula gets me to $70k, less $10k in updates = $60k

Owner would like to get $75k - $80k; Rental rates are $1,000/mo on avg.

Option 1: Offer $55k cash

Option 2: Offer $70k owner financing, $10k d.p. to owner at closing, finance balance at 6% interest for 10 yrs, then pay off loan/refi/sell. Results in monthly pmt of $300 (int-only). However, the total paid out to seller is $10k + $36k (over 10 yr period) + $60k (balance at end of term) = $106,000. 

Option 3: Offer $80k, $5k d.p. to owner at closing, balance paid back in 200 months (16.6 yrs). Results in monthly pmt of $375, but house is paid off after term. Total pd to seller over the term is $80k.

I'm trying to differentiate the options, ie, what's better for me vs the owner, etc.. 

Does each option make sense in it's own right?  

Is there enough spread between the 3 options to persuade a seller to take one over the another? 

This is a hypothetical case, remember.  Any and all comments would be appreciated!

@Richard Balsam - yes, you're correct. I meant Equity Depot. Listsource gives you an option to select a certain equity % for properties, ie., all properties with 30% or more equity. Probably just another way to arrive at the same list as Equity Depot.  I'm just now starting another DM campaign for Absentee Owners (ie., rentals). Thanks for your clarifications, and good luck with your investing!

@richard 

@Richard Balsam How is Property Depot different from obtaining a list from Listsource, and selecting foreclosures or pre-foreclosures? Is the benefit from Prop Depot that it sends you updates, or you can obtain an updated listing any time you want?

Thanks!

@Vincent Crane there are deals to be had in all markets. Move to OTP and see what comes up. We work the north side of ATL and have found deals there. Good luck with your investing!!

Rashad,

I have a turnkey deal on the west side of ATL, just OTP. Are you interested in checking it out? PM me if you want more info.

Mark