All Forum Posts by: Ludmila M.

Hi Ka'Ron,

I'm not sure I can be helpful, but can recommend reaching out to Quantum Bank. They have no problems working with legal entities. I don't know if they do ELOCs, though. Let me know if you need a contact there. 

Ludmila 

I will be talking to a potential seller who responded to my direct mail. The seller will be relocating in a year (!), but because this relocation will come with a lot of other headaches, the seller is considering selling now, "if the price is right", to make it less of a nightmare later on.  The seller is a single parent who also appears to have financial struggles.  

I understand to make this deal most appealing, I would need to offer the seller to stay in this house for a year under a lease agreement. Other than that I am lacking any creative ideas (and experience) on what other options to offer to motivate the seller. Did any of you have experience with situations like this? Or if there is no urgency for the seller to sell immediately, this effort is unlikely to result in a deal?  

I am interested in this house as a rental property. 

Thank you!

As stated above, what you want is tax assessor's website for whichever county you are researching. For example, for Fulton county, you google "Fulton County Tax Assessor" and you get to their website, from there click "Property Records", and you will eventually end up on this page: http://qpublic9.qpublic.net/ga_search_dw.php?count.. Then you research your property based on the available search options. 

Quantum is fantastic for real estate investors, I've been really impressed with them so far. Feel free to PM me, I'll be happy to share my contact there. 

Thanks everyone for the input! The offer was turned down, but I am just going to wait it out and see if the lady comes back.  She said she had another buyer already, but it could be just a game. For now I moved on to another property. 

@Rocky V. @Levi T., exactly what I did - getting ready to submit another offer tomorrow.

@Roy N., my price is going to be substantially lower, that's why I am worried about her reaction after I tell her my number.

Calling on all negotiation experts, including Michael Quarles (couldn't tag him). 

Tomorrow (Friday) I need to present an offer to a direct seller solicited via my direct mail. The seller is the sweetest older lady, and I want to handle this communication gently.  The situation is a bit awkward, however.

As a disclosure, I am not a wholesaler, not an agent, and I am interested in this property as a rental for my portfolio. 

Background:

Yesterday I visited her property, a brick ranch. It is very dated, but in an excellent location. However, it has notable disadvantages relative to all other homes in the area. While I tried to explain all these points to the seller, she agreed, but insisted on her asking price.  I didn't go as far as to naming mine. The lady, however, loves my "all cash, no inspection, in any condition" proposal.

Now, an interesting point in all this is when I came to see the house, there was an agent sitting at her kitchen table. Supposedly the agent is representing this lady on a purchase of a house in an active living community, where the lady is moving to. Clearly, the agent was there as a watchdog. This made it a bit awkward for me. The same agent supposedly brought a buyer to the lady before (sale fell through), so obviously she is helping selling the lady's house. At the end of our meeting, the agent suggested to the seller to get an offer from me for comparison, but the seller wasn't interested. 

Today, I get a call from the lady asking for my offer. I have a strong feeling that this was an instruction from the agent to get the comparison number. The lady refused to give me her lowest acceptable number, and firmly said "I want you to make me an offer". Well, I failed the negotiations basics, and promised to call her tomorrow with my offer. 

My questions:

1. What is the best way to navigate this situation when there is a "buyer's" agent actively involved?

2. How should I approach my communication with this lady if I know my offer is going to upset her? I don't want her to feel insulted or that I am trying to take advantage of her. I honestly wish her the best and don't want to be pushy.

3. What's the best way to present the offer - number first and then justification, or vice versa?

4. If it matters at all, is it better to give her a call in the morning, afternoon, or evening?

As a disclosure, I did listen to all the podcasts and researched BP topics on negotiations.  I just find this situation outside of a traditional negotiations script. I hope you guys can help me, as I do want this house.

Thank you!

Hi @Steuart Wright, I am glad this was helpful! I also felt this topic was a bit overlooked here.  

In addition to what you see in this thread, I'd recommend adding a fat safety cushion to your budget for all unplanned expenses. Since I posted my question, I already ran into some costs that were not on my list. For example, subscription to  certain databases that I didn't even know existed. I am sure there are more surprises ahead, but thankfully my "Miscellaneous" category is generous :).

Thanks, @Greg H.!

Hi,

Calling for experts on HUD homes.

I would like to bid on a HUD home as an OO, with an honest intent to move in for at least a year. Good middle school district and great location of the property justify the hassle for my family. We plan to buy with cash. The situation is that we already own a home and would like to keep it. The thought was that we will rent out our current house when we move into the HUD place. Hence my questions:

1. Are we allowed to bid/purchase as OO if we already own a property and intend to keep it?

I contacted a local HUD-specialized brokerage with an unrelated question, and as soon as the person heard that we already have a house, he said we can't bid as OO. I couldn't find a confirmation of this, so wanted to check here.

2. If we are buying with cash, will we still be required to move in within 60 days? The place needs quite a bit or repairs, and with planned vacation coming up we might not be able to meet this deadline.

3. If our offer is accepted and we move in, and then continue conducting RE investment business, will HUD have a problem with it? In other words, does it violate anything if we are RE investors living in a HUD home?

4. If our OO bid is not accepted, and the property rolls into Extended period, can we bid again but this time as investors?

5. From the moment we are notified about offer acceptance, when can we cancel without losing EM? Before signing a contract (is that 2 days?)? During DD period (15 days?) Or once our offer is accepted and for any reason we want to cancel - the EM is gone?

6. Alternatively to #5 above: if necessary, can we cancel our offer before it gets accepted?

Thank you in advance for answers!

Ludmila