Creative Offer Ideas

[James Hall]

Scenario:

Seller purchased property (paid cash) about 2 years ago for $180,000.

Present market value of property is about $155,000. and feel I can purchase property at that price.

I'd like to explore and possibly present seller with an offer that would involve them providing financing for the property.

Is there some creative tools or approaches for demonstrating how he would benefit from providing financing as a part of the sale?

[Steve Simpson]

One of my mentors always told me to make 3 offers:
1. All cash; usually around 60% of ARV
2. Some cash up front, owner carries the note; usually around 75-85% of ARV
3. No cash, owner carries the note; usually between 85-105% of ARV

I agree with Mitch that you need to know the seller's situation before making the offers, but by coming in with 3 offers as opposed to 1 you have 2 additional offers to fall back on in case they don't like the offer that you think makes the most sense for them.