All Forum Posts by: Gurleen B.

Gurleen B. has started 10 posts and replied 36 times.

Hi all! An offer we made on a property was accepted and I am wondering how I can convince the seller to let me take on their mortgage (their rate is 4% compared to the current 6%).

Is this a complicated process? Is there anything I can do to encourage the seller that this is a great option for them? Has anyone had success with this?

Any and all advice would be greatly appreciated -- thank you in advance!

1 Vote

Quote from @Ricardo Hidalgo:

Quote from @Gurleen B.:

Hi all,

Looking at making a final offer on a property and wanted some input on two options I have in mind:

Is it better to make an offer for $519,000

Is it better to make an offer for $544,000 (his counter-offer) but ask for $25k in closing credits which I can use to buffer any potential issues with repairs/upgrades/renters not being happy with rent increase, etc?

Thanks in advance!

I prefer to make an as is offer with the fewest amount of concessions to get the lowest purchase price possible. Closing cost tend to be write offs and I can get a better equity position to leverage for the future that could be tax free.

From what I understand closing costs cannot be deducted from your taxes. Are you doing something differently?

0 Votes

Quote from @Christina Yoon:

Depends. What is the cost to borrow VS. What cash position you have. Will it appraise at higher value?

From a seller's position, not much of a difference from an offer standpoint. But as a buyer, it affects you more.

I think it will appraise at a higher value. The $25K in credits would either be used to bring down the interest rate or serve as a hedge/buffer in case tenants don't want to stick around for a rent increase and as such the property can be updated.

@Eliott Elias I agree equity is the play, but just to play devil's advocate what would prevent me from paying that $25k as principal if I realize it isn't actually needed?

0 Votes

@Andy Sabisch what a valuable lesson -- thank you for sharing!

0 Votes

Allentown, Pennsylvania

Quote from @Andy Sabisch:

We are buying a duplex that has one side rented but they are on a month-to-month lease (actually do not have one at all so it is be default a month-to-month arrangement). They paid January 1st for the month and we close on the 11th of January. We will be terminating the lease and giving them 30 days to vacate. So the question is does the 30 days start from when we close and give them notice (so they would need to be out by 2/10) or from the end of the month that they are paid up through (which gives them until 3/2)? We are intending to give the tenant the 30-day notice after we close .

Unfortunately we found out issues that the seller "hide" in the process with this tenant and to make life easier down the road, this is not a tenant we would want as trouble is written in neon letters.

Thanks

Curious what/how the seller hid and how did you uncover it?

0 Votes

Allentown, Pennsylvania

Hi all,

Looking at making a final offer on a property and wanted some input on two options I have in mind:

Is it better to make an offer for $519,000

0 Votes

Hi all,

Looking at making a final offer on a property and wanted some input on two options I have in mind:

Is it better to make an offer for $519,000

0 Votes

Hi all,

Looking at making a final offer on a property and wanted some input on two options I have in mind:

Is it better to make an offer for $519,000

0 Votes

Quote from @Clint Koehn:

Thank you all. I’ve hashed this out with the tenant and ultimately got the rent up to $1,600. And keeping it month to month. I’ll probably raise it $50 - $100 each year until it gets to what I’m hoping to get ultimately. Keeping it simple.

Well done! I was just going to post that I don't see any harm in raising rent to meet the market. As long as you are presenting facts/data they will appreciate it. If they don't, it likely is a good time to part ways.

I am curious why some landlords prefer month-to-month rentals. Isn't the uncertainty maddening?

@Bjorn Ahlblad @Steve Milford

0 Votes

Oklahoma City, Oklahoma

Quote from @John Warren:

The biggest property tax change that is coming out is a new program that mirrors the old Class 9 program. If you are in affordable housing (many B- or C locations) then you can do renovations to your building and get a long term 25% reduction to your assessed value (which is huge). We are in the middle of this process on multiple buildings in Berwyn, and this could raise the value of our buildings substantially.

John can you tell me more about the property tax change you referenced here?

0 Votes

Chicago, Illinois

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All Forum Posts by: Gurleen B.

Gurleen B. has started 10 posts and replied 36 times.

Post: How To Take On Seller's Mortgage?

Post: Better to offer less money or more money but ask for closing credit?

Post: Better to offer less money or more money but ask for closing credit?

Post: Okay, here's a question on time to vacate

Post: Okay, here's a question on time to vacate

Post: Better to offer less money or more money but ask for closing credit?

Post: Better to offer less money or more money but ask for closing credit?

Post: Better to offer less money or more money but ask for closing credit?

Post: Raising Rent - Good Tenant

Post: Looking for feedback on Chicago market for multifamily CRE