Offer technique?

Hi folks!

I have a conundrum, and would like to squeeze some thoughts from the collective genius on here!

An RE rang me recently to let me know there are 3 houses in a row coming up for sale in a small town which i have a good impression of. She said the price would be $169k, but they would more than likely take $140k each for them.

My problem is i've just settled on a place, and all my cash is tied up for at least 6-odd weeks untill i re-finance. Even after re-finance, i still don't think i will have enough for a deposit!

My question is this: How can i present an offer to the RE/vendor to make it attractive enough that they will sell to me, taking the above into account?

My thought was, offer to buy all three at $140k each, one with a 3 month settlement (low deposit), and the other two in blocks of 6 months after that. Effectively taking 15 months to complete the purchase! I would do a minor reno on each in the timeframes and re-finance. Is likely to be accepted by a keen vendor? Is there any way i can make the offer more attractive?

I guess i could always ask for vendor finance, but i think this may be an even longer shot!

Thoughts please!!
 
Maybe Negotiate a full or partial option to buy contract on the blocks until you can get the $$.

Eg: buy block you can afford now as goodwill and offer/negotiate an option to buy on others until you get the $$ together.
 
Maybe Negotiate a full or partial option to buy contract on the blocks until you can get the $$.

Eg: buy block you can afford now as goodwill and offer/negotiate an option to buy on others until you get the $$ together.

Can you explain that in a bit more depth for me Jonril?
 
http://www.somersoft.com/forums/showthread.php?t=71128

In the example just ignore the sell option if you plan to hold.

or as you suggested negotiate a longer settlement with appropriate finance clauses and cross your fingers the $$ come through.

Disclaimer this is just general ideas not financial advise you should be speaking to your Broker/Banker/Accountant/conveyance/lawyer instead of some guy on the Internet :D
 
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Cheers mate. I've got no problem getting ideas from 'some guy' on the internet! Pretty easy to separate the wheat from the chaff :)
 
locko
You already have good ideas mate
I doubt that they'll find someone to buy all 3 so you should have a good chance. Its a bit risky but without risk there is no reward ;)
 
why not offer more on the 2nd and 3rd blocks with longer settlements, you wont have the holding costs so it is good for you as well and vendor gets rewarded for having to wait for cash

if you offer $140k block 1 60 day settlement

block 2 $144k 6 months settlement

block 3 $158k 12 months settlement
 
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why not offer more on the 2nd and 3rd blocks with longer settlements, you wont have the holding costs so it is good for you as well and vendor gets rewarded for having to wait for cash

if you offer $140k block 1 60 day settlement

block 2 $144k 6 months settlement

block 3 $158k 12 months settlement

Hmm. Definitely something to consider there bigtone. With any luck, the cg would grow faster than the higher price!
 
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The other thing you might try is bringing in a partner. Although it's got plenty of good arguments against it, if the numbers stack up it could work for you. (I recently borrowed $30K of my sister and BIL in return for $33K return over 6 mths, a win:win in a silent partnership kind of way.)

Keep thinking outside the box, and let us know where this goes. V interesting!
 
Thought i'd update this.

Didn't put an offer in, as all three houses have a nasty lean to them. The usual ancient house trait of warping and misalignment!!
So much work! Makes me tired just thinking about it.

If Molong takes off, it would definately be a great development site though...
 
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