Is this a deal?

Question

Hello,
                    
                    I got a lead from one of my mailings for an inherited house, 3bed/1bath.  The sellers (4 children of the owner) had the house on the market for a while and the listing just expired.  They are looking for more than what the house is worth (current comp value approx $200k, asking $248k), but the house appears to be in very good condition. In having a discussion with the son, he would be willing to come down a bit (closer to $200k), but still more than we want to pay.  We'd love to pay 65% of ARV, but I don't think they'll accept that.  We aren't going to see the property (it's a bit far away) unless I know they would accept in a range that we'd be willing to pay.  I believe the house is free and clear.
                    
                    I've asked if they'd be willing to owner finance, but they are not.  So, if the house is in as good condition as it looks in the listing photos, maybe we could rent the house or owner finance.  If we owner finance it, how soon before we could sell the note?   Is that a viable option?
                    
                    Although the sellers seem motivated, I don't think price wise they are motivated enough.  Any suggestions on possibly making this deal work?  We really were hoping to rehab or wholesale the house, but neither seems like a good option here.  
                    
                    They are waiting to see if we are interested before they list with a new Agent.
                    
                    Thanks,
                    Steph

Bryan Hancock · Answer

This sounds like a time waster deal to me.  Offer what makes sense to you and move on to the next deal if they won't bite.  You are in the business to make money, not to pay retail.

Jeffrey K. · Answer

offer what you can afford dont try to make the deal work.  When they say no, which they will, walk away and forget about it.

Steph C. · Answer

Thanks, Bryan.  I did tell him we would be offering well under $200k, which is not what they were looking for.

I appreciate the input.

Steph

Bryan Hancock · Answer

Go ahead and offer them...you already did all of the work.  All they can do is say no and you save yourself the trouble of following up with them.  Once the offer is presented let them know you will still honor it if and when they decide they need help.

Steph C. · Answer

Thanks, Everyone. I couldn't find a way to make this deal work, but I thought I'd ask to see if I was missing anything.
          
          I talked to the seller and said they're better off trying to sell retail and probably should list with that new Agent.  I will follow-up with him in a couple months if the house doesn't sell to see if then they'd be more flexible on price.
          
          Steph

Ibrahim Hughes · Answer

Definitely a time waster as other have stated. I often tell sellers my formula and why I pay that amount (to make a profit). I also let them know that this how most investors will price it. I then wish them luck and let them know that if they have any questions or if anything changes, feel free to call me. Surprisingly I do sometimes get a more realistic call back or even a referral. You never know. But definitely don't get in the habit of emotionbally attaching yourself to a rehab project and trying to make situations like this work. Establish your buying criteria and stick to it.

Is this a deal?

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