All Forum Posts by: Al Pat

@Alfred Litton Would you get discounts from the bank for making three payments in advance on your mortgage? There lies your answer. You going to get paid, all in one or one at a time. Does not matter.

@Eric Roloson Not distressed state all, both times. Latest one is under contract at $128k, vs asking of $140. Both sides generate $850 each in rents, good tenants are already in place with lease till Q3-2020. Good COC.

@Eric Roloson I understand you are trying to make a low ball offer based on two weeks but that is NOT the only factor to consider while making an offer. In this business, making a fair offer will earn you a property and reputation. Run the CAM, check the rental rates and projected repairs. There were time to make 60 cents on a dollar offer but right now 80 cents on a dollar all cash, zero seller contribution and close in seven days without ANY contingency (no appraisal) would probably get you a house.

I am a firm believer of being fair, I bought a duplex from a lady last year, offered low but fair price. Some heart burns but then she realized it was fair offer. Well, this week she called me and asked me if I would like to buy her another duplex and asked me to name the price. I gave a number and she accepted. No listing, no bidding, instant decision. That’s how good reputation will serve you.

@Joe Cassandra following

@Josh V. I typically buy the faucet myself from Home Depot for around $79 and my plumber charges me anywhere between $50 and $75. Last occasion, I had tenant (who is handy) install a faucet himself, I provided the faucet, as a part of the deal he got $99 faucet.

You got totally ripped off. I thought property manager has to check with you, if the cost of repair exceeds $200. Not true in your case?

@David Smith Buy new property in your wife and your name (1031 exchange) and then 45 days after closing transfer your new property into the name of the LLC. This will serve your tax issue and LLC ownership issue.

@Maurice Blackledge Awesome job. Congratulations.

@Anita Anand what market are you in? REI in many way is similar to many other opportunities, one has to apply for many jobs before lending one but you not going to get every job you interview for. Likewise, you have to follow the numbers and continue making offer. All will not get accepted, but one will. If they don't accept your offer at your numbers then move on. However, make sure your numbers are making sense and not low balling an offer. I make sure I have at least 15% COC and meet 1% rule. But, sometimes you don't meet 1% rule and still get 15% COC, if it is truly a value add. I just closed on a small apartment last week and this was the case. My tip to you is to identify your market, know the rents, taxes etc. Call houses listed for rent and ask if they would consider selling. Also make sure to attend local REI meetup, that's where I find off market properties like my last deal. No matter what, don't give up. Harder you work, more you will appreciate the house when you get one. It's not IF, just when. Good luck.