Making a deal to set up future deals
Wondering what you would do.
I am about to put an offer in on my first student rental property, listed at $130k and would like to offer $120k BUT..... The seller is testing the waters a bit. She does not have to sell but is willing to for a good deal. She also owns multiple properties in the same area that she would potentially like to sell as well. I'd like to build a relationship with the seller to get a leg up on any future listings and hopefully make some off market deals. We have considered just making a full asking offer, or maybe $125k but cover seller closing costs. Just trying to be creative and make an effort to build a relationship.
What would you do?
There is no incentive for the seller to cozy up to you. Be firm, offer what you think it's worth
@Jacob Theurer Set your criteria of what return you want to make a property. Offer that number. I've missed out on numerous deals because I have been greedy.
- Conner Olsen with The Moorhead Team
- 702-521-0034
- [email protected]
Quote from @Conner Olsen:
@Jacob Theurer Set your criteria of what return you want to make a property. Offer that number. I've missed out on numerous deals because I have been greedy.
Not trying to be greedy. The numbers work fine any where from $120-$130k. Just looking to "be the first call" when they are ready to sell more.
#3 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#3 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Jacob Theurer, as others noted, if it makes sense at $130k, than it makes sense. The "first call" is a distant second on the decision tree.
But also think about it from her perspective. You pay $130k, and you are the first call. She says "I have a property I am willing to sell for $150k". You run numbers and it is worth $120k. You were the first call because she thought you would overpay, not because she has any loyalty. As soon as you say no, you are not the first call for every subsequent deal.
And I also see limited value in being the "first call". Typically, sellers only make those first calls to people they think will pay more than market (thinking they are getting a deal). I have purchased many properties (in fact most) on market. Sometimes sellers have pie in the sky numbers in their head, and it only gets through to the seller when they list and either get no offers, or only offers well below their list price.
