Since I am new to investing in residential income properties, could someone please explain to me at what point the seller will consider my offer an insult?? Is 30%below market toolow??? Should we not be concerned with what the seller thinks as long as we have the numbers to back up our offers????

I have been watching a nice quad for some time now. The price has come down some and is now listed for 199,000. The gross shceduled income monthly is 2,000. This property willl cash flow, but only after a substantial down payment. With no maney down it bleeds red. Should I ask $175,000?? I seems like a nice investment. Appears to be in good shape. Good rental history. Fully occupied. Might be one worth looking into a little further at the right price...

If you are going to worry about making offers that insult a seller you may wish to consider a different business. You are not in this business to keep sellers happy, you are in this business to make money for yourself. Are you insulted by sellers who ask too much? What you should worry about is how much a property is worth to YOU. What the seller is asking is irrelevant. You make offers based on what YOU are willing to pay, if it is not accepted go on to the next one. If the income on this property is 2k you have to figure that expenses will run $800-$1,000 per month, probably will not be much if any cash flow at 175k.

8)

Chance,

This quad is being offered at retail and is not a good deal. As you already said, this property will bleed red. It is almost double the price it should be. The seller is looking for a newbie to sell this property to. No experienced investor would buy it at that price.

Personally, I wouldn't bother making an offer on this property - it is a waste of time. Instead of looking at retail properties and hoping to turn them into deals, you should be looking for desperate sellers who will do ANYTHING to get rid of their property. That is where the deals are at.

Good Luck,

Mike

Mike, what's the best place to look for desperate sellers??? Is there anyway to contact you about your book?? Email perhaps...

Thanks for your help!!

Originally posted by "chance2":
Mike, what's the best place to look for desperate sellers??? Is there anyway to contact you about your book?? Email perhaps...

Thanks for your help!!

Buy his book. It is available on Amazon. I bought it. It's excellent. I have yet to find another no-BS book like Mike's.

You can also purchase it through this very site, as I understand.