Wholesaler · Raleigh, NC · Member since 2014 · 3 posts · 0 votes
I've been eyeing a property for a long time, wasn't able to reach the owner until today. He just happen at the house as I rode by. He had already been approached by many other investors, but said he liked my approach because I didn't treat him as being destitude or broke needing to sell. Long story short, he was very receptive of me, gave me a tour of the property and everything I needed except how much was left on the mortgage to pay. He said he thought that was personal and didn't feel comfortable giving me that information. I told him I would need know all the numbers to make him the best offer possible. What do
you do, and how can you make an accurate offer on property without knowing? Thanks!
Of course he doesn't want to give that info. Why would he tip his hat and show you his cards?
In the future I would frame it in the context of what are his near term goals. Is he more into a quick sale / short escrow? Does he want to downsize? Live closer to the grandkids? Freely give your knowledge of the industry and the market. Give your honest perspective of the market, its strengths and weaknesses. You get him to see that you are a resource, and he'll cough up more info.
But if you approach it as a "Hey, why don't you give me all the tools in your arsenal so I can slay you!" ... you won't get very far with him.
Of course he doesn't want to give that info. Why would he tip his hat and show you his cards?
In the future I would frame it in the context of what are his near term goals. Is he more into a quick sale / short escrow? Does he want to downsize? Live closer to the grandkids? Freely give your knowledge of the industry and the market. Give your honest perspective of the market, its strengths and weaknesses. You get him to see that you are a resource, and he'll cough up more info.
But if you approach it as a "Hey, why don't you give me all the tools in your arsenal so I can slay you!" ... you won't get very far with him.
Not surprised he didn't want to give you that info. The info you're looking for it out there though. My realtor sends it to me every time before I make an offer on a property.
I'm going to wholesale the property to an end buyer .
It still doesn't matter. If you are wholesaling and not approaching the property under a creative financing scenario you don't need to know how much debt he has on the property. You make him an all cash offer with terms that allow for the time you need to find the end buyer.
What condition the property is in, what its worth to an end buyer (ARV) and what you are willing to pay for the property is all a wholesaler should need to know.
Realestate is the business (GAME) of poker. Be careful not scare your opponent or he'll fold then what do you have. Sounds like you're in the ball park he did show you the house good work now its time to close the deal..
Due your due diligence on the house check public record and see how much was his original mortgage that will be filed in that county court house then work the numbers from that time period.
No matter what your exit strategy is knowing what the balance on the mortgage can prove helpful. You may be able to work a sub2 deal if you're not married to wholesaling. Either way, simply ask him "does he want all the money now or would he like more money over a bit of time"? Also you might ask him if he'll accept what he owes on it. See what he says.
If all that goes nowhere just make the offer you think best.
if you're able to go to your country property records (hopefully online) and see when the last mortgage was recorded- you can get a general idea of what his payoff amount is.