Rip it to shreds - I'm thinking outloud with this:
The following is an attachment for a letter of intent. The property has an ARV of approx. $375,000 minimum. Asking price: 349,000 (dropped from 370,000), owners are not in home. No mortgage on home. House in need of many repairs. And agent has told me, that seller "will take" $325k.
The following I have typed up. I want to send a letter of intent with three offers. Read this as if you were an investor. Does it sound professional? Stupid? Silly? Comments?
Here goes:
Purchase Offer: 1
Purchase Price: $179,000
Down Payment: $5000
Balance Payable: $174,000 - through conventional mortgage subject to and conditional upon purchaser arranging suitable financing.
This is an “as is” offer to the extent that Seller may leave any and all unwanted belongings and current damages/needed repairs as is.
Purchase Offer: 2
Purchase Price: $230,000
Down Payment: $5000
Balance Payable: $225,000 - through Seller finance of:
(2) $5000 dollar promissary notes to be paid each year on or before 5th day of the month of June and December, for (5) years.
$175,000 paid to seller at 6.3% interest for a term of 30 years.
Monthly payment from purchaser to seller: $1083.20 (360 payments) [principle & interest loan].
Total interest paid to Seller: $214,954.34
Total amount paid to Seller: $444,954.34
Includes: Seller 3rd year pay off option: At Seller request to purchaser, balance of loan minus any principle paid off to date, will be provided to Seller at that time (date to be determined).
This is an “as is” offer to the extent that Seller may leave any and all unwanted belongings and current damages/needed repairs as is.
Purchase Offer: 3
Purchase Price: $295,000
Down Payment: $10,000
Balance Payable: $285,000 - through conventional mortgage subject to and conditional upon purchaser arranging suitable financing.
This offer is subject to identified repairs (yet to be determined) to be made by Seller prior to closing and subject to Purchaser walk-through on multiple dates (to be determined), prior to closing. Attached is general information on identified repairs.
All above offers are subject to and conditional upon the purchaser’s attorney’s approval as to title, encumbrances, liens, easements, and any other regulatory impositions that may relate to the subject property to be furnished in a formal contract.
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okay so that's it. Repairs estimated at around $35,000.
TMcG
Author
