my first terms offer

2 Replies

i met a landlord who owns several rentals and is selling some of them.

here's the numbers on one

asking 95k needs carpet replaced and 2k to get rent ready

rents for 900-1000/mo

i want to make 2 offers one cash one terms

this will be my 1st terms offer and im anxious and I don't want to butcher it. I will also want to buy the other rentals she owns

what would a terms offer look like in numbers for this one? i appreciate your feedback

I usually offer with a letter of intent that outlines 3 scenarios.

Dear Seller, I would like to express my sincere interest in purchasing your rental house on x street. I found the location and ..... very agreeable to my needs and I look forward to working with you!

Cash or loan proceeds. No realtors or endless showings.  88% of asking (very specific number with no zeroes)

Be the bank.  10% down, market rates, payment of $600 per month automatically to you from a local servicing bank.  95% of asking price, but no zeroes.

Lease option. 30 months, $600 a month 1.5% consideration. Asking price.  

Something like that.  Adjust percentages to how you feel. If they choose an option, draft a formal PSA or option and go under contract!