Flipper/Rehabber · Granby, QC · Member since 2019 · 1 post · 0 votes
Hey guys! My name is Kevin,I’m from canada and i am new to real estate investing.so the story is that i just took the equity on my house to finance a home that i will build to sale , but my girlfriend told me her friend’s mom will sale her house to go live with her new boyfriend.but the house is not on the market yet and the other houses around are listed around 200 000$
So if i apply the 70% rule - 5000$ rehab that leave me with a offer of 135000$ . With no cash down and i don’t want offend her neither with the offer,
Do i pass on this deal or there is a way i can negotiate this
Investor · Nipomo, CA · Member since 2014 · 366 posts · 401 votes
7y
First, mention to her that you purchase properties as an investment. This means you do not purchase at retail value. However, by allowing you to purchase the property, she will avoid the headache and time it will take to go through the traditional route.
I would then ask the friend's mom how much she wants for the house. This will push her to name a price first, while also letting you see how accurately she prices her home. From there, (assuming her price is much higher than yours) you can say something to the affect of, "I'm sorry, but I am unable to purchase at that price. For a home like this, I would typically purchase for $105k-$135k (the range allows you to low-ball while also giving her a high end that she might think is a win)."
After that, you'll just have to see how she takes the low offer. If her goal is to sell quickly and not deal with agents, then you may have a lot more room to negotiate than you think. If her goal is to get the most money possible, then she'll probably scoff at your range and say she is taking her property to market. However, by mentioning you are an investor and using terms like "I'm sorry, but..." and "I'm afraid that..." you present yourself as non-confrontational which will help her empathize with your position.