All Forum Posts by: Daniel O.

No pump is going to be able to pull more water than the well can provide. Keep running them while dry, and they will burn up. Might be worth doing a flow test on the well. It is possible something has changed with the well so that it just isn't keeping up with demand. Then again 5 adults and 1 kid could use a lot of water....  but you wouldn't think it would be an issue in the winter unless there is a leak somewhere.

If they are able to take a huge loss with someone else's money, then carry it forward for a decade or two to offset any income taxes they might owe, they could make a ton and go all the way to Washington. Just saying.

@Kenny Oliver, I think your approach is reasonable. Rather than thinking in terms of geographical distance, it might be helpful to think in terms of financial or logistical distance. Can you get a cheap direct flight that puts you in close proximity? That might actually be more viable than some place that is closer but costlier in time and dollars to reach. But I agree, you will want to make the best of your time in NJ by interviewing prospective property managers. Reach out here on BP for recommendations. @Ralph R. lives in a remote part of Alaska, where it would cost him a chunk to travel outside to the lower 48 to check on a prospective place. You don't have that problem. And if you can wrap some play time with your GF into the trip, all the better.

@Lashaw Salta, a word of caution is in order here. I have had too many experiences with agents who are getting a kickback for referring buyers to a particular (pick any and all of the following) contractor, title company, property manager, off-market property, inspector, mortgage broker, etc.  When an agent is getting a kickback and not disclosing it to you, their interests are not aligned with your interests. You absolutely need to do your own due diligence for all of these services. As my grandfather said, and he has been quoted by so many, caveat emptor.

Plenty of good advice above. Not sure where you are in the closing process, but you might also ask the seller to throw in some cash to help get them out. After all, it was the seller's "error" that is costing you $3500. On the other hand, I suppose the seller might back out once they realize they could have been making that much more money on the place...  But I agree, if the tenant is someone you would rent to, offer them $1000 to move out or give them $1100 off of their first few months rent at the higher rate in the other place. If they are not someone you would rent to, just offer them the $1000 to leave early, but have it decline by $150 each month after the first month that they stay. After 3 months, the offer is $700....after 5, it is only $400.  That gives them an incentive to move quickly.

It is possible there is something about the documentation you are submitting with your offers that is scaring sellers away. Are you including a financial statement that shows you actually have the cash?  There are a lot of people out there making cash offers who don't really have the cash in hand....  

It is also possible that your agent is not doing a good job representing you to seller agents. Not saying this is the case, but it bears watching.  

Finally, it is possible someone is offering more than you, in which case it makes perfect sense that your offer would be declined.  Remember, the seller's agent's job is to get the seller the highest price. Yes, they make more money when they do that, but that's how it is supposed to work.

Don't fall into the trap of offering more than you think the place is worth just to land the deal. Stick to your strategy. Eventually, it will work.  You might also consider including an escalation clause with your offer. At least that way you might get a second shot at it if someone else is coming in higher.

The term "investor friendly" gets thrown around a lot. What exactly are you looking for?  If you plan to use a property manager, you might also try talking with one to see where they recommend looking based on where they see rental demand and ability to place good tenants. But keep in mind, their time is valuable too, so if you are going to pick their brains, you should follow through and use them when you land your house. @Ned Carey maintains a blog that includes solid recs for property managers.

@Jonathan Safa I don't think your characterization of people who rent is entirely fair or accurate. Many people are stuck renting because they can't get a mortgage to buy even an entry-level place where they are living. This can be as true of the middle class folks in the Bay Area as it is of people living near the poverty level in Detroit or any of our other distressed urban areas.  For people who anticipate moving regularly, buying may not make sense. Look at the folks who assumed that it always made sense to buy, even if they were going to be moving on in a few years, who were left holding the bag when the housing market collapsed in 2008. Many are still underwater. Were I in their shoes, I'd be thinking very carefully about buying again.  For others, who really don't want to have to deal with upkeep or grounds, renting may make more sense because condos can be a terrible investment. Many people who are financially literate make a conscious decision to rent.  From my perspective, it is the financially literate who are the ones making us rich. They do a good job budgeting and planning, so they are better able to pay rent on time. And they understand the financial implications of an eviction, so again, they pay rent on time.

@Derrick Wallace it depends on where you are investing. In some markets, supply remains very low, and prices continue to creep up with demand. As a general rule, I don't think we have seen the same degree of new construction in the multi-unit space that we saw around 2000, so in that sense there is more pent up demand relative to supply. The trick is to look at how the syndication is structured. What is guaranteed? What is at risk? How is it vulnerable (e.g., to a drop in rents)? Where are the properties, and what is the likely economic trend in those areas?

@Joe Twing, you are getting good advice here from folks who have been to this rodeo before. Listing on Loopnet says the roof is new, so that might not be an immediate issue. But I agree, if this were a deal, it would have sold long ago.  One other consideration that has not been raised here is how the sale would affect the taxes on the place. I've looked at a couple of seemingly good deals lately, only to realize the city had assessed the property at far less than the asking price. You need to figure out what the taxes would be based on the sale price (or a little higher). In most jurisdictions, a sale results in more attention from the assessors office. You could be looking at a BIG increase in taxes, which you must include in your calculations.  You should also look at the sales history. It was listed for $1050000 in 2010. Best of luck. Let us know how your thoughts evolve and what you decide to do.