All Forum Posts by: Dylan Grieve

Hi BP community-

I've been emailing people who've had recent fire damage to their homes, and have recently started talking to someone who's property is paid off, and the fire damage was estimated by the insurance company to be 145k.

After researching comps, I've estimated the ARV at 135k. This seems like it obviously isn't a deal, but speaking to those of you who are more experienced and/or more creative, is there something I could be missing?

Perhaps the insurance company overestimated repair costs?

Any insights/advice is greatly appreciated!

Amazing to see you've finally done it! Good work, and I bet you learned a ton!

@Christina R. - thanks for the feedback! Real estate is definitely a great way to build wealth over time, and gather large amounts of capital quickly when needed. Definitely psyched to be doing this full-time, it's like a dream job.

@Christina R. - I was doing some last-minute research on negotiating, and a few that stuck out were: Be ready to walk away, and start reaaally low. I realized that 45k wasn't really that low, so I went for 40k instead. I would have gone a good deal lower if this was a rehab/flip, but it's a rehab/hold with minimal repairs needed, and the buyer would have paid up to 60k for it, so he made out good. It will cash flow very nicely.

Back and forth:

I spent a good 2 hours preparing, just writing out the bullet points, starting with additional questions for her, moving onto some of the new issues we found with the house, summarizing the repairs needed, then working into reminding her of the reasons she wants to sell. And at the end, veeery slowly working into the first offer; she said another investor offered more, and then I worked my way up on price. The whole thing probably took about 5 minutes, although I may have lost track of time. I was in the zone.

Thanks for the responses. I had alot of rapport built with her already. I already closed the deal, and am just reading this after the fact. I started at 40, ended at 48, so it worked out. My first deal, and a nice chunk of change to keep marketing for the next one. Yeehaw!

Hi guys and gals of BP!

I might be closing on a wholesale deal tonight, and since there is alot riding on whether I can negotiate this successfully, I'm trying to prepare.

Here's the bullet points:

-She lives in another state

-sick of dumping money into the property (she rented it)

-wants to be rid of it before summer

-indicated in the first conversation that she'd take 60k (I want to get her down to 50k)

-80k ARV

-she owns the property free and clear

I have a buyer lined up, who has also been a mentor. He'd like to purchase it as a rental, and my compensation will depend on how far under 55k I can convince the seller to go.

This is my first negotiation, and I sense she's motivated. How likely could it be to get her down to 50k, given she stated in the first conversation that she'd let it go for 60k?

I was thinking of starting at 45k, then going to 48k if no bite, then 50k, very gradually.

Any thoughts/suggestions/quick tips?

Thanks,

Dylan

@Adam Johnson - on my second set of mailings for probates, and people with fire damage to their homes. Also am mailing out-of-state owners with over 50% equity in their properties. Have gotten about 16 callbacks so far, and am still getting organized with excel, expense tracking, etc.

If I was you, I would expect to spend a few hundred minimum to get started, and expect to put some time into it. Also, I've networked with people on this site, and at my local real estate investors meetup. This site has been the most helpful. I've been reaching out to various investors, offering lunch/coffee, and actually found an experienced investor on this site who is willing to partner on some deals, so just be persistent, and look for people who are doing what you want to do.

Also, get a job, and put some money in savings before you do anything else. Nothing is guaranteed, and it's good to have a protective cushion. Finding deals can take quite awhile, so just be prepared.

Feel free to PM me with any questions as well.

@Nathan Baumgart - thanks for your advice and the heads up. I've only sent out the first batch, so it may be 3 or 4 more mailings before any responses, but I'm preparing myself for super-motivated, super-angry, and everything in between. Working as a registered nurse has definitely equipped me to deal with these situations well.

Mark, thanks- and yes, I'm trying to find a healthy balance between showing respect and also showing them the benefits of working with me. I guess it's all about how well you can get into the reader's shoes, and identify with what they might be feeling at the time.

@Jacob A. - good to hear- we're all rooting for you!