100k apart, help me get creative!

13 Replies

I wanted to pick some of your brains to see if you could think of a way to get a creative and make a deal work!
This property will be a buy and hold which I will owner occupy. The area is getting a major regentrifiction in the next 6 years so I feel very strongly about this area.
Duplex has been on the market for 190 days. Price has already come down 100k.
Asking 1,150,000 Offer: 1,000,000. Counter: 1,100,000 (seller says they won’t even bug the tenants for under 1,100,00)
I don’t want to give in to quick as this property has been sitting on the market for a while and given our markets, I’d think it will put pressure on the seller.
My counter was 1,000,000 until I look at the property and then might consider increasing offer. I included a detailed explanation of a close by comp which sold off market in February for 930 with a detailed explanation including data why this unit isn’t worth the 1.1 right now.
If the seller won’t back off the 1.1, I’ve consider trying to structure a deal at 1.05 with 100k seller financing over 5 or 6 years which with interest payments will give them the 1.1 that they want.
Any thoughts?

Thanks for the reply Jay Hinrichs . Sounds like for now I am going to have to wait them out.

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Originally posted by @Jay Hinrichs:
Originally posted by @James M.:

Thanks for the reply Jay Hinrichs . Sounds like for now I am going to have to wait them out.

Anyone ever tell you that you have a striking resemblance to Warren Buffet ??? 

 The profile pic IS Warren Buffet. 

Same photo shoot or TV interview, plus/minus 30 seconds: 

https://jackwelch.strayer.edu/academics/eop-profile/warren-buffett

To bring us back to real estate, Google Reverse Image Search lets you upload a picture, and it'll show you where else that - or strikingly similar - picture is on the internet. When someone posts a picture of a house with an undisclosed address, boom there you are.

 

Originally posted by @Jay Hinrichs :
Originally posted by @James M.:

Thanks for the reply Jay Hinrichs . Sounds like for now I am going to have to wait them out.

Anyone ever tell you that you have a striking resemblance to Warren Buffet ??? 

Warren is anticipating the recession and launching a new podcast  how to survive on only a billion cash flow a year !!!

Also agree on the "wait them out" strategy...

I was in this situation a couple years ago with a property.. It was a much smaller deal, and we were only 5k apart (95 vs 100k or some such), but we just couldn't come to an agreement. 

Based on comparables, my offer was already a little higher than it should have been, so I wasn't about to add another 5% on top of it. 

About 18 months later, I saw it still for sale, now asking less than I'd offered. Of course, I'd long since moved on + invested that cash elsewhere. Go figure.. 

@James M. Just so I'm clear on what's going on, $1.1 million and you haven't been able to see the interior yet? The owner wants an offer before disturbing the tenants?

You mentioned the $930k off marhet deal, What was the condition of that property?

What does the most recent 4 to 6 Comps come in at?

@Ray Johnson, I have an owner I’m speaking with that says the same! I asked to see his tax returns for the last 2 years to try to get a good handle on his financials for the property. Did I mention that he doesn’t track anything? I am waiting for his 2018 tax return (he got an extension), then based on what I can figure the expenses to be, will send him a letter of intent to get into see the units.

Sorry for the delay in response. My BP app was acting up and wouldn't open on my phone. At this point i'm simply at a stand still just waiting to see if the seller come back. We are only 50k apart and while i feel there is very good up side on this property over the long haul, I am not chasing a property in a market which is becoming more and more bearish every day. We are coming into the slowest quarter for home sales, and possibly heading into a market pull back, so the pressure is on the seller. 

@Ray Johnson, there aren't many current comps. The property which sold for 930 was actually off market, and way off of the other comps. The comps definitely support the asking price, but I whether they sell now or wait, the value is going to be coming down in the next couple of months, so I am not paying market. 

@Morgan Wallace Do you normally ask for tax returns from sellers? This is only my second property, but maybe i'll ask. 

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@Morgan Wallace Do you normally ask for tax returns from sellers? This is only my second property, but maybe i'll ask. 

I never have before, but I figured the K1 for this property should have the income and expenses for the past year, and is apparently the only source for this info.