Buying small multi-family at 20% discount

[Victor Gomez]

Hi All!

I read the 7 years to 7 figures from Brandon Turner, and one of the things that he states is that we need to buy at 20% discount. I would like to ask to the BP community to hear any experiences you guys might have with this strategy.

Have any of you tried this out? How's the likelihood to get an offer accepted in the current bullish RE market?

I have found deals that are good deals without the 20% discount, like a 4-plex, that cashflows 800+ a month ($200 per unit) and an ROI of more than 12%, so on these cases I am afraid that by being strict with this strategy I might lose a good deal.

Any suggestions or ideas would be highly appreciated :)

Thanks!

[Scott Schultz]

if you are paying cash or getting fixed full term financing its ok to pay closer to market but you wont get that equity you need to weather a storm if your note needs to be renewed in a down market cycle. this is why the right financing is key.  Personally im pretty much watching and will buy if a good deal shows up but I will not over pay, and preparing to buy like mad when the market tanks again.   Just my thoughts