All Forum Posts by: Jestin Sorenson

@Rashad K.

I do have a couple 6 unit apartment buildings I'm looking at. A 4 unit and a duplex right now, if you're interested. Let me know what your criteria are. Do you prefer cash on cash returns of 12% or are you looking for value add. Cap rates what have you.

I didn't. They needed a lot of work and he wanted too much for them imo, so I let them go.

I came across a motivated seller selling a 2 bd townhouse. I got him down to 100k easily over the phone. There is no repairs needed. Excellent condition. Granite counter tops etc. Well I will know for sure when I see the place today. Not sure if its a good investment property or not from a rental prospective. I was thinking about just listing it on the mls. I think I could get at least 120k on the mls conservatively. I'm fairly confident I could get 135k in my market in this area on the high end. $250/mo in HOAs. $1200 conservatively for rent. My question is, if I want to list it on the mls, I'm not a realtor, whats the best way to approach this? Should I use a hard money lender? I sent him a postcard. I'm a wholesaler and said I would pay all cash. I could possibly negotiate that.  I was thinking I would purchase cash from a hard money lender and list on the mls. 120k is slim margins but a potential for 10k in profit assuming it sold quickly with realtor commissions. 135k would be more than worth it. He wants to move to Colorado on April 24th, so not a lot of time. Does anyone have any suggestions on ways to approach?

I have a seller with 9 units hes trying to get rid of. 3 properties. A 5 unit and 2 duplexes. He wants 760k and he owes half of that still. He doesn't want to pay the 7% realtor commission so he called me. I'm not sure if its a deal or not. I need to run the numbers. All 3 properties are next to each other.

What information do I need to get from him, seeing as one of the properties is commercial, 5 units? 8 of the 9 units are rented. The one that is vacant, he will show me tomorrow. The others I can't see right now.

What is the best strategy to take, if I sell them as a package deal or break them up and sell them individually?

If 760k is too much, should I make an offer on just one of the properties to wholesale and go from there? Is there any specific language I need to use in my contract to sell them individually?

I haven't done a deal yet, so to get all of these properties at the same time is a bit overwhelming. Not that I can't handle it, just not sure if there're any gotchas to be aware of or if anyone has done this and has the best way to approach the seller? TIA!

Sorry about my late replies on this. I wasn't getting notifications that I had replies and wasn't checking on it regularly.

@Ronald Rohde I believe it's state or county. I will have to look into it further. I haven't done anything with it yet. Was just curious. It'll prob be on the table for a while..

@Mike McCarthy Thanks for the advice! Ideally I would be selling the land to the government, but they  might be willing to sell the building to me. I don't have the million dollars they want for it. Best scenario would be to sell the land to them, but how would I reach out to them and would they deal with me as a wholesaler? I could put the property under contract and that would give me the rights to sell it, but would they even consider buying it with the assignment fee or would I double close?

@Christine Takayama That's  a great question! The guy wants $150k for the land which I don't have. Could be a good partnership with someone, but a lot of ifs surrounding whether the government employees would pay to use the parking lot or not..

@John Woodrich Thanks for the advice! I haven't followed up on this since. I think you're right. The land is definitely not worth $150k and the owner would stand to profit off of this deal more than anyone. From what I understood about the conversation, the government had already fixed up the building and that they put a million into it or its worth a million after renovation. I wouldn't have anything to lose by putting the property under contract and testing the waters but time put into it. At any rate, it's prob not worth the time. Just chasing squirrels lol

Thanks for your replies everyone. I wasn't getting notifications that anyone had commented on my thread and hadn't checked up on it in a while.

@Roland Paicely Thanks for your comment! I was trying to do the same thing, but had ran into multiple sellers that wanted more. The problem is without a contingency, which I needed anyway, I didn't want to lose a $500 emd.

@Tom Gimer That's solid advice as well. I didn't know someone could come after me for having weasel clauses in my contract and only $10 emd. I've already changed my contract to escrow $500 emd, but still have weasel clauses as a way out.

@Brian Pulaski I don't know about your state, but in Minnesota it's in our best interests to not put $0 emd. Could make the contract void.

I spoke with some people and will probably put some weasel clauses in my contract. I'm still new to this and don't know pricing as well as I could. I know it will come with time. The problem is not every seller is motivated and may not be willing to come down in price as much as I'd like. I don't want to get unknowingly stuck with a PA I can't afford to pay. I would like to be able to come back and cancel the contract/renegotiate a lower price if I can't find a buyer willing to pay the PA price. I know that's not the best strategy but you gotta learn somehow. 

What types of contingencies do you guys put in your purchase agreement? Do you need them? Anyone have a purchase agreement they could share? Thanks!

I've been doing some direct mail marketing and a guy called me about a plot of land. The government owns a building next to it that they've put money into to fix it up and they aren't using it. The building has no parking lot. The plot of land could be turned into a parking lot and also controls the alley up to the back door of the property. The owner knows this and told me this, but is too old to be chasing people down. He told me he would sell me the land for 150k. If I can get the government to pay more than that for this piece of land, I/we can make some money. Does anyone have any experience or advice? If I had the property under contract, who would I approach at the government level and how would I approach them? The government may be interested in selling the property if they are not using it and are not interested in the land for a parking lot. I could buy it from them and market both the property and the land together for more money than separate.

This is out of my area of expertise, but I'm willing to learn. I would partner with someone on this. Maybe this isn't a deal and it's nothing, but I wanted to look into it and see if anyone had any experience or advice. Thanks!

@Bryan Hancock I'm looking for an example of a letter of intent with multiple offers, could you send me yours? I know how to construct the multiple offers, but I'm not sure how it looks otherwise.. You also mention non-motivated. I'm direct mail marketing and am coming across non-motivated sellers. They own them outright. I was thinking I would submit multiple offers to them to see if they would bite. Am I wasting my time? Would still like to see a letter of intent with multiple offers for future reference. Thanks!