Need advice on these deals

[Chris Boyd]

I have two prospective deals.

#1 FSBO Owner owns outright. Comps say 690k, he thinks it's worth 740k.

#2 FSBO Owner owes about 60k. Comps say 550k to 600k.

Both properties need some updating and TLC...nothing major from what I can see.

If these were your deals, what are you saying to the seller? (#2 is more motivated than #1)

All input is appreciated. Thanks BP nation..

[Bill Jacobsen]

Hi:

I don't know why you think these are potential deals.  I prefer to buy properties to flip that would also make good rentals if they don't sell.  This means I have to deal in properties whose after repair value is less than the average price in the area.

I also like to deal in properties that need enough rehab so that most retail buyers won't compete for it.  Your only competition will be other rehabbers.

I tend to tell the truth about what I plan to do with the property and why I can only pay so much.  I will show comps. if I have to.  If I can't get the property there are always others.

I have gone in partnership with sellers and shared profit if appropriate.

Good Luck.

Bill