Need Negotiation Advice

2 Replies

I am a real estate newbie. I just closed on my 1st investment property a week ago. It's a nice duplex that i can actually move tenents in right away but i wanted to do a few minor upgrades to maximize the return on both units. Today i was contacted by a company who wanted to buy the property from me. After a little research, I've found out the company has bought a lot of properties and land in the area to build condominiums. Because i bought the property through a probate deal, I'm sure it will be difficult to find a deal with a $50,000 investment can return $2000 monthly free and clear. What should be the starting point in negotiations? How should i factor in the long term income i will get to the lumpsome that will be offered?

@Edward Henderson a unit of measure I have heard is five years of income. So 24k/year x 5=125K say 135 k including rent increases is where you would want to end up if you believe in the 5 yr profit deal. Start higher so they can feel good about beating you down. If it were me I'd ignore them.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you