Owner Wants Out - Big Deal?

Howdy…

It’s Friday and I’m taking the afternoon off, but first I owe you this week’s Free Question Friday - right?

I received several questions this week, but the one I received this morning made my blood boil…

Here’s the question:

Message: Hi Derick!!! Hope everything is going fine with you!!! My
question is I have a home ownwer who is 1 payment behind has a very
nice home wants to short sale Don’t know what year was purchased but
it was for 55,000 owes 196,000 in a good market would probably bring
this is a guess but I figure around 225,000+ has made alot of up
dates even added on a work shop. 5 beds 2.5 baths is upside down in
his morgage. Do I need comps to make a sensible offer or would you
shoot from the hip? Small town Iowa. I have a network of all cash
Investors Owner wants to sell Now!!! Any help would be
appreciated!!!! Thanks .

First thing to address - you mispelled my name,

Second, the numbers…

If they owe $196K and the deal is worth $225K, then the homeowner isn’t upside down. They have a very little amount of equity but they’re not upside down and the only way to do this deal is a short sale or having a buyer already lined up.

Third, how in the world do you know it’s worth anywhere near $225K if you haven’t pulled comps?

This is one of the first things you do to get an accurate number on what the house is worth.

NO! -You never shoot from the hip unless you like losing your shirt and money. And if you’ve read any of my courses, my articles, or seen any of my videos, then you already know I’m extremely passionate about knowing exactly what is going on in your market and being aware of what houses are worth.

So, don’t make me come to the small town in Iowa and get medieval…

Look at what houses have sold for in this neighborhood in the last 3-6 months, look at what’s currently on the market, then compare your deal to those houses.

How does the deal stack up?
What’s unique about this deal?
- More Square footage for the money?
- Cheaper than other houses?
- More features?

What makes this house appealing over the other homes for sale?

Finally, look at the DOM - days on market to see the average holding time to sell.

Again - NEVER shoot from the hip…

And my response to…

“Owner Wants To Sell NOW!!!!”

Big deal? There’s so many of these deals that you shouldn’t let them put pressure on you to buy a bad deal. After all, the woods are full of these deals.

Get accurate comps, get clear on the numbers, make a short sale offer that will make the deal profitable for you, because it’s all about turning a profit!

Forget the Miss America answer about helping people. Just forget about it. It’s about making a profit, making money, and if it ain’t gonna work, then don’t do the deal.

Finally, you need to be willing to invest in your education. I’ve laid out all my years of investing in an easy to read how to course on preforeclosures that I highly recommend. Click Here for more

Take care and see you next week…

DP