So we have found what seems to be a great opportunity with a 3 family property in a great neighborhood. All of the numbers look great except the price. It is overpriced by a good bit but we have learned that the bank has called the note. I have a feeling that rather than trying to cut their losses and move on the seller wants to profit from the deal because they believe the house is worth more than what it really is.
The question is really about strategy and options - what kind of deal could we put together that could:
- keep the property out of foreclosure
- satisfy the seller and make them feel good about the deal
- allow us to get a good deal
Surely we could figure out something that could work out as a win-win, anyone have any thoughts?
If the seller is not realistic, there's nothing you can do. When you the bank called the note, I assume foreclosure for non payment? What are the numbers, mortgage your value, asking price?
@Wayne Brooks Yes, I believe it was because of non payment. I'm not sure what the sellers monthly payment is although they bought the house for $350,000 in 2004. I assume they refinanced at some point because they're listing for $475,000 or $173/SF. Not sure what our number should be at because we're waiting on comps but the houses in the neighborhood that are selling for 475k are much higher quality.
Listed, as in MLS? Then, you'll have a lot of competition. You should be able to look up any mortgages and liens online with your county offices, clerk of court, registrar, etc. but of the seller wants too much, they want too much.
I would make sure the seller has my number and ask them to give me a call after time and events have brought them out of the price stratosphere!
Sometimes people are unwilling to realize a poor investment and cut their losses. Don't waste your time trying to make chicken soup out of chicken sh*t. Run your numbers and stick to them, if the numbers don't work then the deal won't work. This business is about making money not losing it.
Real estate investing is about discipline. From what you have said here, I'd move on as your time is probably spent better elsewhere
I would offer a number you can make work for you deal. Be prepared that the seller won't accept a low ball.
Thanks for the input everyone. I think I'm moving on from this one. Maybe the seller will reconsider. I will follow up of anything ends up coming of it.
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