I have a lead on a seller who has 4 homes in decent areas. They are rented conservatively but he is asking retail. I explained that his asking prices were simply unrealistic and that in order to purchase them he would need to come down on price.
I then told him I would take a discounted rate with seller financing.
Or that I would give him a price even lower then that as an all cash price.
He is open to the seller financing.
My thought process is: Get him down to 75% of ARV on seller financing. As the leases come up liquidate the properties at FMV. Potentially keep one of them owned free and clear by moving 3 of them.
What is the current state of repair of the rentals and why is the seller motivated to sell?
It seems odd that the seller wouldn't just sell his houses at FMV?
It sounds like a lose-win situation. Please enlighten.
75% ARV and seller finance? That is a win for you, but is it also a win for him? Is this a distressed situation? Are the houses needing heavy rehab?
The owner carry is more valuable to me than price. I would likely hold them if they cash flow, and as long a term as the seller would carry.
Great questions guys. Properties are in decent shape. Owner is out of state and elderly. They are sick of dealing with them.
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