Your Last Off Market Deal --- What Was It?

Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes

I've been pounding the pavement, starting to talk to owners/sellers. I went to an ICOR meeting last night and it was a pretty exciting meeting. A lot of what was discussed was the structure of the deal and creative financing. From paying over list price, 100% owner carry, delaying payments 10 years to a list of other crazy deals, that ultimately got investors deals.

What was your last deal? How did you structure it to set yourself apart and make it a win-win for both buyer and seller?

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Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

10y

Originally posted by @Patrick Soukup:

How are you coming across these boomer landlords @Steve Vaughan??

Mostly I direct mail a postcard to the crudest for rent signs I see. Written in marker, taped to the house? Getting a card. Others are older for rent ads on CL, mostly. Especially if I see the phone number is a landline.

I also sleuth properties having yard sales, moving sales or selling a bunch of stuff in general. If they are a renter, their owner is getting my postcard.

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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
10y
I've been doing seller-carry's with about 8% down @ 6% for 20-yrs from tired boomer landlords that own free and clear.
You may want to consider moving this from the 'official site announcements' forum @Patrick Soukup!
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
I'm a rookie on this website @Steve Vaughan I don't even know how to delete the post! Haha I looked, I'm sure it is staring back in my face.
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
How are you coming across these boomer landlords @Steve Vaughan??
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Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10y
My last one was buying a duplex in a 1-acre block of 8 duplexes.
I already owned 3 of those and mailed an offer of 15K to the out-of-state owner, who had bought it come years ago, but never finished renovation. She called me back and was ready to let go.
Now, I get at least 1 general letter/postcard per week on those duplexes, so, she would have gotten those as well. I think the difference may have been that I made an actual cash offer, instead of just a general mailer.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
10y
Originally posted by @Patrick Soukup:

How are you coming across these boomer landlords @Steve Vaughan??
Mostly I direct mail a postcard to the crudest for rent signs I see. Written in marker, taped to the house? Getting a card. Others are older for rent ads on CL, mostly. Especially if I see the phone number is a landline.
I also sleuth properties having yard sales, moving sales or selling a bunch of stuff in general. If they are a renter, their owner is getting my postcard.
4 Reply
Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
That's awesome @Michaela G.! What is its current market value?
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
@Steve Vaughan I'm currently farming a neighborhood. I may be limiting myself by focusing on this square mile piece of the town, but I'm gonna find a couple of pieces of property in this neighborhood. I'm starting off with a mailer, followed up by *knock knock knock*.
-Patrick
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
10y
@Patrick Soukup farming and knowing everything about a specific neighborhood is a great plan, IMO. Master a niche to get rich as they say. Doesn't hurt to do a little shot-gunning every now and then to have feelers out, but being the best transaction engineer in a specific neighborhood, knowing what things are worth and who owns what is stellar. Good luck!
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Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10y
Originally posted by @Patrick Soukup:

That's awesome @Michaela G.! What is its current market value?
That's difficult to judge, because I have an assemblage of 4 duplexes. And I met another Atlanta investor on BP and we're partnering up. I got him involved with buying a 5th duplex and got him in touch with the owner of a 6th duplex and he now has that one under contract. The owner of the 7th duplex is on board and the 8th duplex is in the corner.
We're going to fence our 7 duplexes (and fencing the 8th one out) with a gate and create somewhat of a special interest compound/community, which will allow us to get higher rents than are normal in this low-income area.
My initial interest in buying these duplexes was because this block is overlooking a major development and will be worth a lot to a developer in the future, as this is a historic district and they can't just buy houses and tear them down. But these are actually not historic, so, there won't be a problem with demo, when the time is right.
Just playing with situations ;-)
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
Good luck @Michaela G.!! I tried piecing together three commercial properties for an investor friend, but he wasn't patient enough to buy one, work on the other and so on. He wanted all three or nothing (I can't blame him, less risk that way). Having to only deal with one owner will significantly increase the value to you and the land for these developers! Awesome job!
-Patrick
1 Reply
Justin Spaulding
Real Estate Investor · Milton, WI · Member since 2015 · 52 posts · 14 votes
10y
@Patrick Soukup, I bought a four unit that needed help. Poorly managed. You can see entire story on my profile. But the seller held most of hte downpayment and I only had to put down $5,000. It has only been 1.5 years and have already made my money back and a few times over.
1 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10y
Originally posted by @Patrick Soukup:

Good luck @Michaela G.!! I tried piecing together three commercial properties for an investor friend, but he wasn't patient enough to buy one, work on the other and so on. He wanted all three or nothing (I can't blame him, less risk that way). Having to only deal with one owner will significantly increase the value to you and the land for these developers! Awesome job!
-Patrick
And I don't suggest for anyone to just buy properties with future potential. That would be speculating and many lost their shirts that way in 2008. But rather make sure that each buy is worth it by itself and if you can then assemble a number of those 'free-standing-deals' and make it an assemblage - then that's icing on the cake.
1 Reply
Steve Haight
Las Vegas, NV · Member since 2014 · 732 posts · 137 votes
10y
@Patrick Soukup
There are some and alot of real estate investment clubs in Denver area. That said my first real estate deal I ever did was a vacant piece of land that I bought for 30k and sold it for 50k 6 months later that was 10 acres in a rural area outside of Las Vegas. I did this with no money down, at the time I was 27 years old, showing my age here lol.
Happy Investing
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Anson YoungBusiness Member
Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
10y
Nothing too creative, house needed a ton of work, he replied to my mail, and I bought it and flipped it.
Exciting, right?! :-)
Podcast Guest on Show #235
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
Dang @Justin Spaulding I just read your bio. Pretty fun couple of deals you've started so far. Good luck with the 8 unit! 50,000 units! See you on Forbes billionaires list, my friend. Very cool.
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
@Anson Young When asked why Donald Trump was able to get a 40-year tax abatement for rebuilding a crumpling building - he responded with "because I didn't ask for 50". I guess, sometimes, all it takes it just asking. Great job Anson!
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
Just right timing @Steve Haight??? Congrats!
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Well, I sold some land, didn't list it, put a sign and number out. Told them what I wanted when they called. Got a sob story from a neighboring owner and a low ball offer. Said no. They called again, still no. The third time they called. I told them my GF has a son in college, his fraternity uses the land for camping. This next summer he wants to lease it and have a pay to party place (which he did). The rents would be X dollars, they won't destroy trees and they can't use too much electricity with music jam sessions, to it's easy money and it's rural, no restrictions, so why sell an income producing acreage as if someone was going to put a cow on it?
They called back. They'd take it! Done! Closed, off to the bank I go. :)
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Bill S.Pro Member
Moderator
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
10y
I got my last deal because I was their only buyer and I offered three options. All win win for me. They selected the one that worked for them. Owner finance 100% for 5 years at 5%. Paying about 5% below market as well. Rent will be about 0.67% of purchase price so it will cover everything but huge major expenses. I paid a bit extra because I have none of my money in the deal. I'll probably do paint and flooring so technically I will have some money out of pocket. Nice 2/1 with a large lot and 2 car garage in an up and coming area.
I'll post about it after I close.
1 Reply
Tim G.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
10y
2 bed 1 bath house in a great part of San Diego. Wholesaled for $25,000 had spoken to the seller for a year and half consistently following up. Solid deal and a win for everyone, we closed with tenants in place and the new buyer is doing an addition that should net a nice profit.
1 Reply
Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
That's awesome @Bill S.! That was discussed last night. Do you have a balloon at the end of that 5 years? Planning to refinance?
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
glitches on BP right now
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Patrick Soukup
OP
Rental Property Investor · Fort Collins, CO · Member since 2015 · 273 posts · 127 votes
10y
Awesome @Tim G.! My little 4-plex took the old owner 3-4 months to finally agree to it. Patience is tough sometimes!
1 Reply
Simon Shih
Investor · Houston, TX · Member since 2012 · 354 posts · 186 votes
10y
My last deal is still going and it's actually my first deal. Postcard mailers. Got one call only out of 1000 cards.
He gave me the address on the voicemail (I'm offshore and have done the whole deal from out here) and I looked it up before I called back.
Asked what he was wanting for the property and asked if he would meet my associate to view the house. He said he'd take 20-25K. Had my niece meet him, take pictures and email them to me offshore. Called him back after I got the pictures and made him an offer of 15K. We close on Wednesday.
Here are the numbers:
2 Bed 1 bath
15K price
80K ARV
35K in repairs
Rental 1000 a month
Going to BRRRR it. I was going to do the whole thing from offshore with my wife's help, but I'll be home for the closing and to get contractors in place.
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Logan AllecBusiness Member
Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
10y
Southern California small SFR...previous owner bought for $210k a few years back...I picked up for $75k and currently renting for $700...I found it through mailing yellow letters.
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