Suggestions on negotiating this deal ?

G'day people.

I've been eying of this property for awhile , hoping it hangs around and I get through others I'm doing and able to grab it.
It's gone in with a new agent now, I know they'll palm it off quickly and so I rang him to test the waters .
Turns out the owner,very old, is in hospital and the family just want it gone.
I explained I'd need to get through some others first but I would like to tie it up if sellers were willing to work with me.
He was keen as and said look they just want it gone , I'm sure they'll do you terms, low deposit for 12 or 18mths while you sort your others , if you want to put in an offer. Well , you don't get that op very often do ya ?

I could rent out it's house and it also comes with other titles, if I sacrificed one of them , sell it day one on vendor terms, I have a buyer and via V/T there's no need to worry about titles and what have you or involving the seller, so that can just flow through to when I settle and then on from there. Together that makes it cash positive day one.
It could just sit there after that for 10 yrs if it has to .
It's a big property , a 5 or 10 yr project, heaps of potential , I'd just like to make my last and take my time with it.
Trouble is , right now it is a bit awkward , I'm not cashed up and I'd have trouble digging up a cash deposit , but the offers on the table.
I wish I was more the wangling type , a guru would wangle a deposit with his vender terms deal, chuck that down to sellers as his deposit, arrange his rental and get in the door without a cent. Thats what they say in their books anyway , yeah I know .
I can set that up but obviously for us less wangling types , it'll take time.
So I need a manageable- which will make it a filthy but irresistible offer to get in right now and tie it up . Something to tempt them with .
It's a big place , high maintenance , which alone would be a real burden to the family as they all live hours away .
My renters and v/t buyer would take care of all that for me though so for me thats not my worry , but it is theirs until the place is off their hands , so thats one thing.
Any suggestions .

Cheers
 
Any suggestions

Yes, a few. It is quite hard to follow you post - you are excited and you need to settle down and put some thoughts down in a logical sequence :D

This is a big deal for you and it represents an opportunity and you don't want to blow off the vendors etc.

Consider hiring a local BA to do the negotiations for you. If you sit down face to face and explain the situation and what you want out of it, then a good BA will be worth the $2-3K you pay. They do this everyday for a living - but make sure you get a good one. :)

Other-wise if we are talking "out in the sicks" someplace, then feel free to rejig your post with more details so we can possibly give you some pointers to do it yourself.

I trust you get what you're after.
 
How about buying with a 1% option fee for 18 month term.

That way you have 18 months to get sorted, you secure the property for 18 months and can rescind if you can't manage to get the deal together.

Risk = if you don't proceed you forfeit 1% of the purchase price.
 
Yeah your not wrong Property , it's an exiting buy this one.
I've been watching it over 12 mths hoping it lasts until early next year because it looks like a dog right now and was with a terrible agent.
I've brought this one up here before but shortly after went into another property so this one went back on hold .
It won't last now though the new agents all over it . It is regional itself but only 15 minutes out from major Plazas .

The BA would be a great idea but that fee could cover backup repayments incase it didn't rent straight away , that'd hurt. But I do hear you and will give it some thought, I might be able to negotiate the fee payment into the final settlement date instead - there's a thought .
 
How about buying with a 1% option fee for 18 month term.

That way you have 18 months to get sorted, you secure the property for 18 months and can rescind if you can't manage to get the deal together.

Risk = if you don't proceed you forfeit 1% of the purchase price.



Nice one Collector.

Not knowing much about options in any depth though myself , what sort of control could I get going with an option ?

I did actually just float by the agent, a possible 50/50 purchase, one section now but with an 18 mth option on the other 1/2. He said they'd really like the lot gone right now and suggested easy terms for awhile on the lot instead .
Music to my ears.

Cheers
 
what about JV? Find a partner with Cash ...

Thanks mel

Yeah a partner would solve the problem but they are so much work. I've found in the past that by the time you work through all the wanna be's , find one and then spend the weeks more work laying out the deal for them , molly coddle all their insecurities , it's more fun pulling teeth .

Cheers
 
keep trying

Hehe, yes I see what you are talking about your experiences. It simply means they are not the right partner you're after because they don't have the ready mindset yet. However it's quite common though. Think about if they have both cash and mindset, then they probably can do it themselves, right?

So basically, the partner we (including myself) are looking for is has similar mindset, but without big enough fund to carry out a project by individual. Just a share of feeling....:D
 
Hehe, yes I see what you are talking about your experiences. It simply means they are not the right partner you're after because they don't have the ready mindset yet. However it's quite common though. Think about if they have both cash and mindset, then they probably can do it themselves, right?

So basically, the partner we (including myself) are looking for is has similar mindset, but without big enough fund to carry out a project by individual. Just a share of feeling....:D


Yep you hit the nail on the head. It's actually quite a tricky and catch 22 scenario isn't it, that is exactly how it goes.
I actually wouldn't mind having a partner and another thing I've realized is that you otherwise work on your own all day but it is pretty bloody tricky.

Cheers
 
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