There is a home that is right down the street, the last few days we saw heaps of junk in the back, broken front window and it appears to be empty.
Being the nosy neighbor (we don't know the people who lived there..its known as the "tweaker house") and seeing a possible opportunity I drove by a few times to get a closer look.
I went to the court house and looked up the owner (out of town).
I would like to approach this owner and see if there is an opportunity there, I just am trying to figure out how to phrase it.
I came up with " It appears your tenants have moved out, are you interested in renting again or selling?"
or "Hi, we live down the street and noticed your house seems to be empty, did you know that is?"
Of course my concern is that it may be known as the empty house and start attracting a certain element, as we are right outside of town in the country.
I don't want to come across as getting into their business but, as a landlord I would like to know what was going on with my property.
@Mary lou L. I would send them the letter. You can state that you are a landlord and are in that area. Some people like sending a picture of the property to let them see how it is. Just tell them you are interested in buying it.
We saw two people over there today. We went over and struck up a conversation. They were there to clean the house. They told us that the county had called them to clean and the house is a section 8 house. I didn't know that the county got involved that way.
Would they if it was one of their tenants trashed the place?
I am going to send a letter to the owner that I found on the tax records to get a feel for the situation, I keep telling myself If I do not ask I will never know.
Likely this owner is frustrated. Doesn't mean they will agree to sell but seems much more likely. Just tell them you buy properties in the area and are interested.
If they are a Landlord they are used to getting a monthly check so I would put together several options (no details on first contact).
Option 1: Owner sell you the house and carries the note. You put down a solid down payment so they know you are serious and maybe they will give you a few months before the first payment is due. This way they get to keep collecting payments but don't have to deal with tenants any more. Make sure and spell out how much the owner will get under this scenario your down payment, + Monthly payment amount * number of payments = Much more then just the sale price. + amount saved by selling direct and not using a realtor (6% commission at least)
Option 2: Owners finances the sale to you with a 5 year balloon, again spell out how much the owner will get for the sale, again more then the sale price (due to interest) + amount saved on RE commissions.
Option 3: Straight bank financing, owner gets the sale price minus RE commissions.
each option should have a different sale price based on the value to you. Highest sale price is where the owner will carry, lowest where you have to get bank financing.
Good luck and let us know how it goes.
Thank you for all the advice! I sent the letter today!
I hope I get a response and find out more about the situation!
I am nervous as this is the very first letter Ive sent. But once I get talking Im sure it will be fine...I just see it as a fact finding mission!
Good for you Mary Lou! Hope you hear from the owner and strike up a good deal. Keep us posted.
I can honestly say I have a 100% response on my mailing campaign!
He called back!
He is interested in selling. He does have other properties so he was familiar with the owner financing aspect. He told me about the house, the age, what was upgraded, general info.
He threw out a number that he thought the house was worth, but at this point I feel its too high, he said he was going to get an appraisal so we will have a firm number to work with.
I hope to hear back from him this week.
My mind is going in ten different directions, of course the big one is coming up with the financing. He did throw out a number of 50000 down, which I do not have, but again that was based on his original number, I feel the appraisal will bring that down.
I am very excited at the prospect of completing this deal, Ive been analyzing, reading, trolling, scribbling, thinking, and fantasizing. I kinda feel like the puppy chasing the ball forever and once I catch it its like "ok what's next?"
Again I want to thank everyone on here, because without the knowledge and encouragement I know I would'nt have made it to this point! Even if this doesn't pan out its still a learning experience and I am soo glad for the opportunity!
Great job and keep going!
You are gaining positive momentum.
I can't wait to hear what happens next! Good going!
I got a call from his realtor today. He (the realtor) wants to qualify me for a loan and go through all the bank rigamarole, and getting me into financing with a bank shop the loan around ect.
I told him I am looking to do a owner finance at this point. He said well I could find you another home, as this one isn't painted, needs work ect, I said that's what I want to take it as is. He asked do we understand that it will take money, time, ect. I told him that I did.
I backed it up and wanted to know what the owner was looking for as far as price. That alone will tell me if I want to go through with this.
I really hated to think of it but it kinda sounded like what a car dealer would do, asking what payment can you afford and then doing the deal that way, instead of starting with the selling price and working off that.
Ive read that the owner may want to run credit like a bank, how do I proceed in this, now that there is a realtor involved?
I do understand that the owner wants to make sure that we can make payments, so I do understand about running a credit check and verification of income and assets.
He said he would call me back with a price. So that is the latest!
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