DM letters worked ! They offered me 14 properties now I'm nervous

DM letters worked ! They offered me 14 properties now I'm nervous

Member since 2020 · 7 posts · 0 votes

I'm a newbie from Indiana. I have listened to BP podcast for months and read the books. I mailed out my first round of DM letters Jan 1 and BAM, I received a text from a owner that gave me a price for a house and offered to sell 14 other rentals in our town, all but 2 occupied. YIKES! His price is pretty reasonable for total package. However, I am so nervous about getting someone else's tenants. The properties are rough and need work, but ideal rentals for this small town area. The owner has had them for over 20 years and ready to retire and get rid of them. Also, I wanted to BRRRR properties but how do I do that with tenants in the house? This moratorium talk also has me nervous! He's even willing to do seller financing. I do not think I will get a opportunity like this again but there is definitely some anxiety about how to handle these houses to successfully cash flow and BRRRR. My initial idea was to buy one by one as BRRRR properties. Also, they quit signing leases and scanning tenants, so there's that too. Any advise on taking the risk or what to use caution with would be appreciated. Thanks!

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  • Steve RozenbergPro Member
    Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    One thing I would suggest is that just because they need to sell their property does not mean you need to buy it. Always remember that once you buy someone's problem property your problem situation it now becomes your problem that you may not be able to get rid of I would grade those properties and decide how you could curtail your marketing to be more specific meaning geographic area price range maintenance needed Etc

    I suggest grading them a through d,

    A is a perfect property D is a horrible deal and figure out the common theme of what you got from the AAA properties and start hyper-focus marketing on those properties with those letters.

    Another option /idea is that you can always get a contract on that property and flip the property as an option contract to another investor if the price is correct

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    So these prices they give you - Are they actually below market?  That's be my first thing to confirm.  

    I have a bunch of pocket listings at prices way above market.

  • Member since 2020 · 7 posts · 0 votes
    5y

    His price for the entire package makes each house below market value.  Individual prices, if bought separately, he priced a little above market value. 

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Well, then I guess it's a nuts-and-bolts math calculation then if you're sure and have the money.

    Am not discounting your efforts, but I'm sure you're not the first person he's sent this deal to.

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