got in touch with seller via cold call. He knew I was whole sailing right away. At first I had a oh no feeling especially after he said his price witch was 40k away from being good.
Then using some tactics learned from BP and others , i got him to open up.
Motivation- wants to retire. Wants to move to wife's 'home country'. Mad at taxes(not that late[under 2k] but consistently late over the past 10 years. ) it sounds like real estate isn't what he thought it would be. Probably never heard of BP lol.
During conversation touched on his other props but was tight lipped.
Sent him email after call and asked for addresses of the other props.
*At this point I feel he might be missing with me but I feel I can work this over time if not, I'm still going for it.
today(2 days later but 1 day before follow up call is scheduled for) he sends me reply email with addresses of the other 2 properties he said he owns. 1 of the addresses is according to county site, his house.
I'm a newbie so I'm still working on keeping out emotion and over thinking/ analyzing info.
I'm not sure if he's messing with me or he ready.
@Justin Griffin Due your due diligence and if the numbers work make it happen...
You've got nothing to lose. Stay on it.
So you have not given him your offer at this point?
@Justin Griffin knowing the owner wants to retire is a great motivation however, like most sellers they don't want to get ripped off. Your next step should be to put a face to your name. Schedule an appointment to see all his properties. In my experience even when the seller did not want to give me a price, or was reluctant to give me property information they tend to lower their defenses once they see you in person. GL!
The seller gave his price. Way to high. Even to keep as rental cap below 6. He bought props dirt cheap. 1 looks like a inheritance (bs on county records). Should I run my rental numbers with hard money values ?
I think during the phone call I became relatable(we from the same area, that helped)
I sent a email 1hr ish after initial call. He emailed me back with the other addresses.
I have a scheduled follow up call today. I want to schedule on site visit and negotiate in person door a package deal. I think those numbers as a package will be more attractive and being in person will be easier to persuade . I'm teeing to schedule on site visits for all 3 in one week. I think speed might help butter him up a little. Idk.
@Justin Griffin let me know what happens
If you can get him to commit to meeting face to face, be prepared to justify your numbers. Proof is always in the pudding and showing someone proof why their price doesn't make sense will make for easier negotiations then simply saying so.
He wants avm. And I'm I rookie but I know enough to know, that's a bad deal. Or is it if or was a true turn key, already occupied. I told him I can refer a realtor if he wants because I can't touch his asking price. That's when he said he's flexible but he doesn't know what his bottom line is.
We have allot in common and that's helping I think. There were a few times he said"oh I can't believe I'm telling u this but".
Got off the phone with him a bit earlier. Got him to say he is flexible. He agreed to on site visit with me. He tried to get away with sending me a video. I said no, I can't get good numbers from a video and if I give u a offer from the video I'd be doing bad business.
He has to go through management company to schedule appt(idk if that's true but makes sense). Mentioned something about the deed that he needs to pay 30k in 6 months to get it(he's making sound like is being held hostage by the previous owner). I don't see that on county record. It looks free and clear. He mentioned he forced satisfaction of deed(I need to research that). He might have been trying to bait me idk.
I told him that my job is to be a problem solver and my goal is making every one happy and we all make some money. That got him to say that off the one deal went good he is open to repeating that with the other props. I want to try to sell a package deal but I'm not going to push that to hard right now. He indirectly mentioned that he would rather I buy it, might go lower price that way. I'm gonna start looking for possible jv because I'm too inexperienced for that right now. I need strong fundamentals first.
I'm going to go over my numbers again. Mao @rental and [email protected] The 2 Mao are close so I think I might have done the math wrong.
before under contract, I want good numbers for multiple exit strategies. Flip, turnkey...
Typing that out I had a thought..... maybe he's using the 50%rule and that's y the numbers make more sense. Cuz when i add a loan payment to the math it drastically reduces cash flow. And my research says I want that cap% almost double the value I got.
Mom and pop investors. Wants to retire but not hurting for cash. Older guy, body failing, construction worker(and a fire fighter, driver astronaut, walked Nixon's dog...Twice ect). He wants less stress load... he's DIYing the props.
I'm think I'm in info over load/ overthinking and over analyzing. At the same time I don't want to go into a deal not properly planned or strategized and create a bad situation involved. I want to build my brand around accuracy.
A thanks to everyone involved in this thread. Sry about my typing and grammar.
I recently spoke with someone that said that as is, it sounds like a good deal. Put it under contract. Put it on the market, listen to the market and go back to the seller and renegotiate.
I see how that can work but.......
Im trying not to let my emotions and inexperience lead me into a bad deal.