I am going to focus on the seller of a hypothetical property that you have found and the offer that you are going to make. You want to write it down so that you have a reasonable chance of being accepted.
Never offer more than you can afford.
Don’t get caught up in the idea that you’re going to make it work no matter what. Let’s face it, some offers just won’t work and you have to let them go.
Ultimately, the person who gets the best deal is the one who is least motivated. You have a lot of potential houses to buy … the seller only has one house to sell.
Find the numbers.
First, you need to know what the current market value of the property is.
To do this, head over to your title company (you can pick whatever you want, just look it up in the yellow pages). Title companies have access to comparable neighborhood home sales.
Look for houses that are very similar to the one you are preparing to buy.
Value the home you are buying based on how it compares to homes that sold before. Use only compositions that are twelve months old or less.
There are two types of real estate that we want to deal with here.
The first type is a property that you can buy for cash, for at least 15% below market value. You must sell these contracts to an investor to complete the deal.
All investors are looking for these properties and will gladly pay a fee to obtain them.
The second type of deal is purchased for full market value by taking title to the property “subject to existing loans.”
I explain in detail how to bid on this type of property in my book. It is one of the easiest ways to buy a property without a down payment or credit check.
