ExtremePerspective

Common sense perspectives and finding a way to retire

Making RE purchase offer

Posted by Paul on December 9, 2006

I’ve been sending out direct mail advertising to people in foreclosure and absentee owners – my goal is about 200 letters a week. So far I’ve had one guy call me who owes about $6K more than his house is worth. Also had two calls from “outraged” mail recepients (now why do people get so worked up about mail that they would bother to call?). With an expected hit rate of 1-2% I suspect it will be a while before I get some good prospects.

Meanwhile I have applied with Brookview Financial for some hard money. I’m hoping that they approve me. The other loan source I had applied to Community Preservation Corp has not responded to my requests and doesn’t seem likely too after 3 weeks.

So I’ve been going to open houses and looking in the MLS for bargains. I found one property that may have some potential. Elderly owner moved out, hasn’t been updated since it was built in 1966, completely paid for. I looked over it carefully today and am making an offer putting 10% down and asking the owner to carry the first mortage with a five year balloon.

Of course, I have no cash on hand ($243) if the owner decides to accept. Hopefully, I can tap into the $60K of equity in the rental property I own

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