Offer Deadline?

Question

We would like to purchase an older home with a second property next to it to start a small business. The owner of both properties has received an offer on the second property and is considering it. We received word today that we have until 1:00 pm tomorrow to either make or not make an offer. Our problem is, although we own our own home (valued at about 400, 000-mortgage balance 117k)-not on market as of yet, and another income producing property on the market at 299,000 (mortgage balance 147K) Owner does not want to take a contingent offer based on the sale of either property. My question is: would you recommend that we pass on this property, even though it has much of what we are looking for or are there other options? or should we take from stock fund for down payment and hope that our house sells quickly once on the market? Any advice would be greatly appreciated. Thank You.

I have an agent and the property owner has an agent. Property owner made an offer on another house he wanted to purchase, however, that owner was not willing to accept, as they did not want a contingent offer on the sale of his property either.

Answer 1

I guess the first question is how much stress can you stand. There are a lot of questions I have but there isn't time for back and forth. I hope you have a buyer/broker because if you don't the realtor is actually working for the seller. The seller is paying the commission, therefore they work for the seller. Be careful how much, and what you say in front of them. Did you get "word" that the owner doesn't want a contingent, or that he would not accept one. The owner might just be willing to take an offer on both, rather than just one. You contingent offer can have a kick-out clause that allows the owner to say no to you if he gets a better offer and you are not willing to match. Be sure to have the clause say that you must be given that chance. Since it sounds like he got an offer on only one, you still might be the better catch.

As far as your property, you might be able to work something out with your existing lender to help you. They would be getting a bigger loan in return. They might be willing to go interest only for a fixed period to give you some breathing room. You might be able to take out a short term loan on your property to get over the rough spot. Unless a miracle happens, you might be the owner of three proprieties for awhile.

Second addition; The last thing you want to do is sell your stock. If you made a profit on it you will have to pay tax on the profit and if you want it back where are you going to come up with the money, and you will probably pay a higher price, that is a loose/loose.

Play poker try the offer. He can turn it down, but he will tell you what he is after because you are still interested. You never turn away a potential buyer. I am glad you have your own agent. Good luck.

Answer 2

You could rent both properties out and take out as much of the positive Equity as possible to pay a deposit on the two new houses.Have new interest only mortgages on both of your original houses.But beware read the small print a lot of interest only mortgages have, a 2% arrangement fee added on when you sell, go for set arrangement fee instead payed on sign -up .Have a 2 year fixed rate this will help you to keep everything under control, Insure the rented houses under a proper landlords ,insurance, cover legals, rent recovery, accidental damage, etc.You will have 2 rented properties + a business, and a home of your own.Have this one on a repayment mortgage.

Answer 3

If I were you, I will take funds from selling stocks for down payment. Later when you property sold, you can buy the stock again.
Funds from stock is very liquid, do this.
do the down payment for the property if you like it.
All the best

Answer 4

I DONT WANT TO READ ALL THAT