First LOI
Hey BP folks - I'm a new investor and need some help getting over the challenge of getting deal number one.
While there's a ton written about due diligence check lists / process, I'd like some advice on pre-LOI diligence and getting comfortable enough to make an offer. How much leg work do you do before putting in an offer? Here are a few things I've hit on, but feeling nervous about putting in an LOI:
- research on surround area, demographics, businesses, general outlook
- walk through of building, saw 2 units of 8 with listing agent. Then drove by a couple times myself
- in the walk through, i evaluated as much as I could about the condition of the bldg, windows, age of appliances, common areas, water damage, etc.
- I'm a finance person, so I've evaluated the heck out of the math and varied scenarios
What am I missing? Adding to my caution, the property has been on the market for 3-4 months and the listing agent told me last week that they haven't seen any offers. I even casually told him that the math doesn't work for me until i'm at a ~30% discount to current asking price. Knowing that, he's still asking me to put in what I feel is a fair offer. It probably doesn't matter, but my thought is he's either asking for an offer so he can claim at least one offer for his client (even if 30% lower than ask) or he really thinks the seller would consider this (I'm probably over thinking this last bit)...
Help =)