I have a lead on a SFR property in my area. The owner got the property in a divorce, has since remarried and moved, but kept the house. At one point the owner listed it for sale and had few if any offers. One major reason is that it lacks an adequate garage. I don't know why the price wasn't reduced. Instead the owner just removed the listing.
The owner later became an AirBNB host. However, the city has banned licenses on STRs and the owner's license will sunset 12/31/2019.
How best to approach the owner for possible sale? Owner doesn't live there, has high equity, didn't receive much during last attempt to sell on MLS, and will not be able to continue to rent as STR in 12-24 months. If the owner waits to sell much later, there may be a glut of AirBNB homes hitting the MLS all around the same time due to the new ruling. Also, who knows what the market will do in the next 12-24 months. Also, off-market will allow owner and I to save the 6% on a listing potentially.
How would you real estate super stars increase your chances of getting the owner's interest here?
If it helps... I want to buy this to live in it - not to flip, rent, or wholesale. It doesn't need much, if any work... not for me to make it a primary residence anyway. I can't do all cash on it, but would have no trouble getting into it as owner-occupied primary.
Talk to the seller and understand why they are selling. They usually fall into two buckets. 1. Just want to be done with it NOW which usually is a low cash offer 2. Wants the highest price which usually is a terms offer (buy on some form of payment plan). The key is to find out what the selller wants and why.
@Travis Moe If it’s in La Quinta, I’d say wait until August. It’s 3 billion degrees, less STRs tenants in the blazing summer, the owner will hate dealing with limited tenants in 110 degrees, utility bills with A/C are high, etc. You’ll have more luck if the owner is at “peak inconvenience” and is more ready to be “done”. It’s why you see a lot of beach vacation rentals hit the market in December. They’re looking at a couple of months of negative cash-flow :)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing