All Forum Posts by: William C.

 Are there really PLENTY of deals though?  Not in this niche.  Im seeing more and more each day, but a true deal is rare these days in my opinion.

@Brian Midden I mentioned above, not in OP this was for an REO. Unfortunately you can't get creative with banks like this. I like the approach when working directly with a seller though

 Never heard it worded that way.  I like it!  

 They all "work" in this scenario.  Some work better than others.  Sounds like you go for it, rather than try to save a few bucks.  Sounds good.  I'd like to hear an update when you get in.  Interesting thinking about buying a house for less than my truck....

 No way, you too?

 I couldn't agree more.  As the thread has proven we all have a different mindset or approach.  We also have different markets, different criteria, and different ways of gaining an edge on the competition.  For example one of my clients does some of the work himself on light flips.  He understands it's his job, and it's the job he loves doing.  He feels he can pay a little more than market price in some cases if lets say he doesn't have a deal to work on next month.  I have another client who doesn't lift a finger, and he feels he needs to get the absolute best deal possible because he will be paying contractors to do all the work, the reno budget is what it is, and can't afford to make it up anywhere else like with sweat equity, or finding a deal on the tile, or using left over material like the previous client might be able to do.  

 Myself, and my clients spend a matter of 10 seconds to formulate our offer, once the numbers are ran and now we know its us and 2 others.   So it's not so much a matter of spending the time to formulate what the offer is going to be, the question is what type of buyer are you.  As the thread has proven, there is way more than one way to skin a cat.

I like your creativeness, and that can work with certain sellers, but if you have ever dealt with REO than you know they would laugh at that, of just flat out tell you they won't be responding for 2-3 days. Iv mentioned it a few times now, and maybe I should have maybe made that a stipulation in the OP, the goal was to make price the only variable. Of course all sellers are going to be different and have different needs. So I was trying to draw out what type of buyer you are, not how many different ways can we try to gain leverage in a way other than price. I appreciate the input though, and I do think its a great approach, but it also doesn't work in all situations.

Also, there is no negotiating., no feeling the seller out.  Its a one and done offer.  You are up against 2 other offers, they either take yours or one of theirs.  I know this is not a real life situation, again just trying to see how people approach the "value" of getting a deal done, compared to the "value" a few thousand dollars financed over 30 years.  

 Are we really talking about emotions though?   Emotions can be left at the door, and maybe pay a little more now rather than have to wait another 3 months for a deal like this to come along.  Trust me, I know there are 100's of other factors at play, so its are hard exercise to make all variables equal.  It's interesting to hear how so many posters are willing to "just more onto the next one"  Are you all doing such a large volume that you'd rather save $5000 on each deal, than lock it up and add it to the portfolio?  Or is it that you all have such great deal flow that if you can't get a rock bottom deal your able to go to the next?  We really don't have the liberty to do that.  There's only a small portion of home in a small area that fit the mold.  I am seeing more and more deals by the day, but for the past 6 months it's been extremely difficult to find anything even close to meeting the criteria needed to move forward.   

I was referring to single family, and a good example would be an REO that the bank prices pretty close to market value. I understand where you are coming from with those types of deals. It's a bit easier to "overpay" by $500 on a 100k SFR. 1-2% on deals that size starts adding up to real money quick I bet. I also hear you in terms of learning the sellers motivation, like I mentioned above, a better way to have posed the question might have been an REO, where the bank has no feelings, and money is everything.

Very rarely are sellers willing to carryback a loan, at least in my experience. I usually ask anytime the public records indicate the ability to do so, or the situation like vacant, or troubled renters.. But I do like this approach. I follow a similar approach on flips. This was for a BRRRR. And also I should have maybe clarified a seller that cannot carry back loan. I love the approach though, just wish more sellers were willing to do it. In fact, 90% of agents I ever mention this to immediately say no without even asking their sellers. They are afraid of sounded stupid and saying they don't know what I am talking about, so it's just a non option. I'm sure you get much better results directly to seller.