My First Off Market Deal, what to offer?

1 Reply

I might make my first Off Market Deal in early 2018. All Properties I have purchased have been thru MLS w my Real Estate Agent, an off market deal would be new for me.

I purchased a SFH in Sept. Soon after Purchase a neighbor contacted my agent to get in contact with me. After talking to her and informing me about some basic rules so I could inform my tenant she invited me to her home.

I visited her home and we hit it off, she's an elderly woman and pretty much wants to fulfill her dream of living next to the beach and is just about ready to sell her home and ask me if I was interested. She doesn't want to go thru the hassle to have an agent show her home and she is savvy enough that she knows if she finds a buyer directly she can save 6%. Her home is across the street from my most recent Purchase so it would be ideal.

Her home is in excellent shape, has no mortgage is even in better shape than the home I recently purchase. Its also pretty much identical to home I purchase for $155k. 

She is elderly and I have no intentions in taking advantage of her, I want to make a deal that works for her and I so she can go forward with her dream to live next to the beach. After spending some time with her and hearing her story she has earned that right. The way I see it if I can make a deal w her that she's happy with she can tell her elderly friends in similar situations and who knows maybe that will be my niche to find off market deals.

I believe her home is worth $155K, she wants simplicity. So the deal I will give her will include her closing Costs. Her Closing cost including I was planning to offer $140k. Her home is move in ready and I can get $1500 rent.

I would like some feedback, would that be a fair offer? Im in a very competitive market would be my first deal without competing with multiple buyers so I'm looking forward to it. What % of saving do investors expect to get when making off market deals? 

Sounds like the house you just purchased is a perfect comp to the one you want to purchase. I would show her the cost of transaction (commissions, etc) and make her a net offer similar to the net amount of your purchase. If her house is in better shape than the one you purchased give her the amount you budgeted for specific repairs as additional credit. Be open and honest, show her all the numbers and tell her that you will buy her home on the day of her choosing.

Good luck, 

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