I got an email from my RE agent yesterday morning. It turns out the owners of the property are elderly, but are in no hurry to sell. They have already turned down several smaller offers, and my agent said they are not open to seller financing. Both of those options were critical in me making any kid of a deal. Armed with that info, I told my agent it would probably be a waste to tour the properties, since a deal would probably not happen. She also said only one of the two properties were rented out, and the other was vacant. I told her I'd go home and draft some tentative offers she can submit to them, and if they appear interested, I would then tour the properties.
So, I went home and came up with several offers. Since the one property was vacant, I just had one offer for it. I quickly calculated three offers for the rented one. Remember, the list price for each was $69,900, and the FMV for property 'A' was $74k and property 'B' was $78k.
Property 'A' -
Offer: $52,000 (all cash)
Property 'B' -
Offer #1: $52,000 (all cash)
Offer #2: $61,000 ($35k cash, $100/mo for 120 mos, balloon $14k)
Offer #3: $65,000 ($17k cash, $200/mo for 120 mos, balloon $24k)
I stipulated the offers were subject to me getting the necessary financing and did not include repair costs. I doubt any of the offers will go through, but one never knows.
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