All Forum Posts by: Erick Caffarello
Erick Caffarello has started 34 posts and replied 92 times.
Post: Looking for financing options 100% on purchase/rehab
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Since 2016…8
Post: Looking for financing options 100% on purchase/rehab
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Hi Folks!
I'm looking for a short term 100% purchase/rehab and refi into DSCR upon rehab completion. Any recommendations?
Erick
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Realtors aren’t interested unless it will turn into a sale…how do they know it won’t turn into a sale? They also said it wasn’t an existing listing and I should approach the owner directly.
I’ve even offered to pay them to run comps. The best I got were sold 2 bedroom duplexes from Zillow one town over.
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
How would I go about finding ARV on this 4 unit? There are no 4 unit comps and realtors aren't interested.
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Quote from @Don Konipol:
Quote from @Erick Caffarello:
Guys,
Can I get some help creating a pitch to an investor to buy an off market property that has failed to sell multiple times?
It’s currently owned by an investor. It’s a 4 unit property, rents are VERY low. I just spent $52,000 rebuilding a foundation at one of my places. In addition to needing foundation rebuild, it needs a roof and the rest is cosmetic.
Current market rent is $1200 for the 3 beds, $1050 for the 2 beds and 900 for the 1 bed. This is a 4 unit property. He has it grossly under priced.
He had it listed multiple times for $150k and it never sold.
If he sells to me, there will be no real estate commissions, and I’ll offer to pay all closing costs. However, I can’t give him $150k.
How can I pitch this to him to make it worth it to sell it to me? I don’t know if it makes a difference, but it assessed for $163k. He’s an investor like the rest of us here. So how can I make the deal sound sweet? I’m thinking of $80-100k.
The foundation crack is about 2 inches - you can see the outside. I was ready to give him list until I saw the basement. The only way to the basement was through the 1st floor apartment. During the showing, the door to the basement was locked. I’m glad I was able to see it before I put an offer in.
There is no mortgage on it currently, so the owner is just collecting cash and apparently not doing any repairs. Doesn’t seem in a hurry to sell.
Any help is appreciated.
Erick
Here’s some creative - and some not so creative ways I’ve used to make deals that initially weren’t reaching agreement
1. Making an offer and politely declining the counter - I’ve made deals sometimes years after my offer was first rejected - just had a seller come back to me 5 years later wanting now to accept my offer from January 2020
2. Waiting for borrower to default and purchasing the property at the foreclosure auction
3. Purchasing the mortgage note from the note holder
4. Offering to do a partnership with the property owner so my cost was less and he retained some “upside”.
5. Paying the owners price, but under my terms. Specifically, an owner financed Zero interest mortgage with all payments reducing principal.
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Quote from @Jason Ha:
As some people have mentioned before, seller finance is a good option here depending on your terms and what terms he is looking for. I'd say keep following up and wait until he's motivated and then he will probably reach out to you first since he knows you are interested.
If this happens and he's motivated I'd try telling him that a regular homeowner most likely wouldn't buy the property and only an investor would and they need their margins. Also maybe get a quote for the foundation repair and present that to him as well if possible to negotiate a lower price.
Sir,
Thank you! I will pitch this to him!
Erick
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Kincaide,
Never thought about seller financing- thank you!!
What terms should I offer?
Erick
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Quote from @Kincaide Wilborn:
Have you considered creative finance options like seller financing? Or were you looking to buy all cash
I’ll look at everything, but $150k is too high for the amount of work needed. Just spent $52,000 on a foundation rebuild. When I saw that crack in the foundation, the deal just fell apart
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Nicholas L.
Makes sense. Thank you sir.
Erick
Post: Help with a sales pitch for an off market property listed multiple times
- Investor
- Phoenix, AZ
- Posts 99
- Votes 11
Quote from @Nicholas L.:
just make a simple, direct offer. if they don't accept - on to the next deal. you can say "if you don't want to sell now i remain interested - feel free to contact me if you change your mind later on."
good luck