All Forum Posts by: Joseph S.
Joseph S. has started 2 posts and replied 16 times.
Post: Investors totally unrealistic and crazy low ball offers

- Abington, MA
- Posts 17
- Votes 8
Originally posted by @Eric James:
Also consider the possibility that your numbers are wrong.
Eric, I actually put more money in Renovations than what they will actually pay. My renovations costs were based on the estimate of a good contractor I know plus numbers I confirmed through my own detailed analysis. Renovations include new kitchens, new kitchen appliances, new bathrooms, new hardwood floors, new heat boiler for two units, replace all the windows for all three units, interior and exterior paints for all three units, debris removal, and added another $ 10,000 for other unexpected costs. These are not serious real estate investors but hit and run type people who want to get lucky in 1/50 offer or even 1/100 offer. Waste of time and insulting.
Post: Investors totally unrealistic and crazy low ball offers

- Abington, MA
- Posts 17
- Votes 8
Originally posted by @Brian Pulaski:
How many investors have made offers? If only a couple, they are probably just going for a homerun deal. If you have had 20 offers of $80-100k below... there might be another reason.
I say put the property on the market and get that higher price you want.
Two investors showed up to actually see the property and offered me $ 80,000 less than my asking price. Other investors did not show up but got the information from a real estate agent who deals with a network of investors and she came to inspect the property. She relayed the information to her network of investors and they came back offering $ 80,000 to $ 100,000 less than my asking price.
Post: Investors totally unrealistic and crazy low ball offers

- Abington, MA
- Posts 17
- Votes 8
Originally posted by @Matthew Paul:
Throw out enough offers and one will stick
In this case Matthew I doubt that these are successful investors, it seems that their business moidel is just based on pure luck i.e. not a real business.
Post: Investors totally unrealistic and crazy low ball offers

- Abington, MA
- Posts 17
- Votes 8
I put a Condominium Triplex for sale to investors only. I did all the needed analysis for a fix and flip type investors. My price = After Repair value (based on detailed comps analysis)- Detailed & accurate Renovations Cost-Hard Money Loan Interest (9 months at 10% interest rate include 90% of list price+ Renovation Cost)- Loan Cost (5 points)- Realtors Commissions-Taxes-Maintenance-Other costs. Their profit based on ARV list price is 15% to 20%. Yet every investor who showed up wants to reduce my price by $ 80,000 to $ 100,000. What the hell? Are these people for real? How do they even get a deal with such crazy low offers? I think their hit ratio is 1/50 if they are very lucky, the idiots I met probably have a hit ratio of 1/100.
End rant.
Post: How to Sell a Condo when on person owns more than 10% of units?

- Abington, MA
- Posts 17
- Votes 8
Folks,
Thank you very much. I will see if the Bank will finance 85% of the loan and agrees that I finance the 15%.
Post: How to Sell a Condo when on person owns more than 10% of units?

- Abington, MA
- Posts 17
- Votes 8
I own all 3 Condo units in a Condominium Triplex. Now that I am trying to sell the buyers are getting hit with the Fannie Mae/Freddie Mac/FHA Condo rules about one owner owning more than 10% of units or more than one units in less than 10 units Condominium.
The Portfolio loans that do not follow Fannie Mae/Freddie Mac/FHA condo rule above require a minimum of 20% down which is a challenge for most buyers.
Cash buyers are rare and will pay no more than 60-70% of market value.
LLC and Trust are out of question for me because of the "due on sale clause"
Is there a solution for my problem? Please let me know. Thank you.