I have a private sale opportunity and am looking for guidance on using the VTB strategy with the seller.
What information do I need to gather?
Do investors use a worksheet to plug in numbers? Can someone share that with me.
What would I present to the seller that is logical and beneficial to both of us if I plan to come in under their asking price and/or 90% financing?
Not sure I want to involve an agent. What do you think?
- August 02, 2021
Hi Ken - These are my suggestions:
- If you do have an agent that is knowledgeable about VTB and with whom you feel comfortable, that might be the way to go. On the other hand, if you have a good relationship with the vendor, I suggest opening the conversation with "I have an idea you might like..."
- Then, yes have your numbers ready. Show them how a VTB could fit into their financial plans.
- Depending on the situation, maybe considering coming in at a higher offer? And use that as a springboard to a VTB offer? There's got to be something in it for the vendor, so you need different scenarios.
- You could certainly set out everything on a spreadsheet but you'd have to plug in the numbers based on different interest rates.
Let us know what you decided to do.
- August 03, 2021
The vendor and I talked and we would be over $150,000 apart on what I can finance and what he is willing to take. And that's with a discount to me because we know each other. Otherwise it would be $250,000+.
- August 09, 2021
Just a comment... when there is such a big gap, in my opinion, it's not the right deal. There are so many properties out there, even in hot markets! Keep looking at possibilities. I usually look at 40 to 60 properties before buying one.