I've made a 3 offers on Short Sale SFs to turn into buy and holds. They have all been nearly turn key - minor paint/flooring updates but nothing more than that. I'm looking for cash flow and cash on cash return so my offers are made with this in mind. For all these I need to purchase them at 70%-80% of listing price. I keep getting a road block from the seller (seller's agent really) that the listing price is the bank approved price and the bank will not consider lower offers - one agent said the bank would possibly consider 5%-10% below listing but the agent was still reluctant. Any suggestions? On one property in particular the seller's agent disclosed that the owners were considering my 70% of listing price offer, but the agent advised them not to accept as the bank would not approve and they would lose time on market. This property has not had any offers in over 6 months. Any suggestions appreciated!
If you've defined your criteria, shoot them an offer that works for you. What's the worst thing that could happen? They say no? If you don't offer, you definitely won't get the property, and heck, even if there's a 1% chance and it meets your criteria and you are happy with the property, the risk is really on the sellers, you have nothing to lose. I'd just advise that you include an expiration date that is reasonable for both parties, as a short sale offer usually takes quite a while to get a response on. Good luck!
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