First Contract for Deed

[Lam Chuol]

I called my realtor last night just to check up him and see how the market is going because he been sending me a lot of good listed properties. Multi-family units, I analyze them and do the numbers even though I know I don't have the money to invest yet. Most of them meet the 1% rule with 16-20% ROI. He told he got a 4-plex that he would be able to do a contract for deed for if I am interested. He told me what he would be asking for and I did my analysis and here my reply.

Me- I would love to look at the property it but I don’t get off work until 5pm plus the drive there so it won’t be until 6-6:30 in the evening. However there are discrepancy between what it’s currently worth and what you quoted me last night. It was last listed for $112k with the estimate market value of $144k but you asking $200k for it. Plus the home is not currently rented I don’t think the price would make sense for me.

Him- Well. You haven’t seen it

Me- Yeah I know but just giving you my analysis of the numbers so far.

Him - You can’t analyze numbers that aren’t there on a property you haven’t seen. There’s more to real estate than seminars and formulas.

My question should I even bother to move forward or is he right on his response to my concerns?

[Brian Van Pelt]

Your realtor is in business to make money. If clients don't look, make offers,buy, then you are not a client, you are a "looky -loo" or a "tire kicker". A good agent evaluates his clients and works with A-B clients. He is basically telling you you are a C-D client and he wants you to get off the pot and make an offer.

Just because you are quoted a price does not mean that you have to buy at that price. Run your numbers and make an offer based on the analysis.

So get up go look at the property and make an offer.

If you are not ready to buy tell your agent and tell him a reasonable time frame when you WILL be ready to look and buy.

Sounds like you have a good agent, don't make the mistake of giving him an excuse to fire you.