Off Market Property

3 Replies

Hey Everyone,

Looking for some advice.  I have run into a situation that I'm not sure how to move forward with.  I responded to an ad on Craigslist several months ago about a portfolio.  He sent me all the normal info etc.  and mentioned he used to be (15yrs ago) a real estate agent and was just trying to help a friend out by brokering the properties.  

Property I'm interested in:

4 unit

Great location

All 1bd/1ba with a large dining room that could easily be converted to second bedroom leaving plenty of common space.

3 of the 4 units are currently rented at $550. Could easily go up to $600 or add a bedroom and get $750 ea. Freshly remodeled, new HVAC, new flooring, semi new water heaters etc.

1 of the 4 units is still gutted.  Most all supplies are in the apartment to put it back together but it's still a mess.

1 unit has a roof leak that was improperly fixed (still leaks) and hasn't been messed with since.

Tax are 3000 annually

Insurance around 1200 or less

His asking price is 165,000 would seller finance with 10% down.

I offered 140,000 with him carry the note with 20k down on a 2yr balloon at 5% interest.

His "Realtor" said he spike with the guy and he wouldn't do any less then 165k. I said if he changes his mind let me know.

It's been several months now and I haven't heard from the "realtor". I drive by the property regularly to see if anything is going on and I also check the assessor's office regularly to see if it has sold.  It has not.

Should I contact the owner directly with out the middle man?  I have his mailing address etc. from the assessors records.  I am beginning to wonder if the middle man even made mention of my offer and thinks he knows the market will bring the asking price.

All comments appreciated.

M view is that you have nothing to lose by contacting the owner directly.  If you do nothing you end up not purchasing the property.  If you contact the owner and he truly wants $165K then you do not purchase the property.

However, if you contact the owner and the "realtor" did not present the offer or if the offer was too low due to realtor fees (4% to 6%) and the listing period has expired he may now accept your offer.  There is even the possibility that an offer that was previously rejected may be accepted after not selling at the desired price.

So I recommend you contact the owner with the realization that your offer may still be rejected (leaving you in the same place you are currently).

I did, turns out the guy was in the middle of a divorce and the 165k is what they needed to sell it for for amicable divorce.  I stepped away from the mess all together.  However, today I think it would have been a good buy and I probably should have pursued it.  Hind sight 20-20 and I have had some great deals since, so no regrets.