All Forum Posts by: Kim H.

Is it a big sales pitch? Or more useful like BP?

No @Carlos Flores the modified some of the wording I put in my new offer.

Yes @Carlos Flores but they countered back at full price again and with a few other changes that I don't really like. And they received another offer yesterday.

Thanks @Colleen F. I am hoping that the sellers will like the fact that I don't need another feasibility period, since I've already gone through inspections. Any other buyer will need time to do DD and may end up backing out like I did... so maybe they will just come down and be done with it so they don't have to disturb the tenants more than necessary. I am just planning for a HUGE rehab expense and hoping my numbers are correct on my first deal. I guess worst case, I fill it with tenants and try to sell it for what I paid.

Well @Colleen F. I just couldn't wait. The property was getting a LOT of attention from prospective buyers so I put in another offer, slightly lower than the original. There's just something about this property that has me hooked. So, I guess I may be posting an update again....

@Jimmy Watson are you still happy with your general contractor mentioned above? I am in the Dallas area and need to find one also.

@Ken P. thanks for asking about the deal. Unfortunately, the inspections turned up around $50K to $75K in repairs (my best guesstimate), which included foundation work, drainage (because water is actually getting into units during heavy rains, one tenant told the inspector she has had ankle deep water in her bedroom at times) and other water issues.

I ran out of time to get any firm quotes during my feasibility period and the seller wouldn't extend or negotiate on price, so I just terminated the contract.

I am really bummed because I think the property has a lot of potential, but I am not prepared to sink so much $$$ into repairs on my first deal, even for what appears to be a great return even with $100K in repairs. If I had more experience and knew how to find contractors that could really help me, I would feel better about it. But with my lack of experience, $500K is a lot of cash to sink into one property... and I don't want to do a loan.

If the property is still available a few months down the road, I may revisit it with a lower offer. The seller may be willing to discuss price at that time.

@Andy Ballester LOL! I added in some padding because there are big trees and quite a few shrubs. I will need to have those trimmed twice a year, plus I will probably ask them to do some flower beds sometime in the future (which will mean pulling weeds too).

@Carlos Flores Yes, I am moving forward, at least with inspections today. I still have until the 20th for the actual end of my feasibility period. If all goes well with inspections today and the environmental survey doesn't uncover anything concerning, then I will own my first MFH.

Thanks @Colleen F. I hope that the deal is interesting enough to provide updates along the way (interesting in a good way of course)!

@Joel Owens the $3000 is for several different inspections (building, termite, asbestos, structure). The inspector I am using has been working with me for 10 years so he is giving me a good price.

Parking lot has recently been expanded. There are 30 spaces for 9 units. Should be plenty adequate.

I am not doing the environmental yet. I have a limited environmental scheduled as soon as I get a good physical inspection report.

I have already met with the city. Although they will not help with funding for the small upgrades I plan to do to the exterior, they don't have an issue with them, as they are only painting and repairing siding, windows, etc. They would actually offer incentives if I decided to do a major overhaul and change the exterior to look like the rest of old town. But that is not my plan for the property at this time. Hold for a while and then maybe.

Price is set. The seller has made it very clear that they have enough interested buyers that they won't come down. So my decision will be based on the condition of the property going forward. If I find something major, they may negotiate but not based on the explosion. I am finding commercial very different from residential in that a disclosure is not required, so using repairs as leverage to lower the price like I usually do in my residential transactions probably won't work for me. It usually works in a residential buyer's favor because the seller is required to disclose the findings of one buyer's inspection to the next buyer (in the case the first backs out). So, they may as well lower the price or repair the issue. I wish that would work here. But, maybe I won't have any issues either.