All Forum Posts by: Matthew G Roy

How was the turn out on this? Any plans of doing another meet up in Salem? I have been trying to connect with local investors but not sure where to start. I purchased my first buy and hold out of state in Dec '18 and would love to bounce a few ideas of a few people with more experience than me on what to do next (ie: partner with someone on a bigger deal, commercial real estate, multifamily, local deals that I do not know about etc.) Any input or advice would be appreciative. Just excited of all the possibilities out there...

the issue is that if comps came in at only 70 then a bank will never loan me money on a property that is overpriced. Maybe on wrong but thats what got me asking this question in the first place.

Oh ok. Maybe I was mistaken when they told me that they were the seller of the property. He (the property manager) mentioned the previous owner did repairs then they did improvements and now have an active lease at 1400 a month. So I just assumed they purchased the property. They are asking 95k for the property. Comps came in at around 70k. I calculate a 35% return on a purchase price of 95k (20% down on a 30 yr note) less mgmt fee, taxes ins and p&I is a cash flow of 6700 or 35% return on my money. Should I jump on the list price even though the comps came in alot lower? I mean they could be wrong like you suggested and from an investment standpoint it sounds great. Or is there something I am not seeing and sound too good to be true? 

Hello!,

I am new to bigger pockets. The wealth of information is dizzying to say the least. I am currently looking at my first rental investment. I have ran the #'s and the cash to cash return is pretty good (about 35% in the first year). The only issue I have is that the asking price is about 25% higher than comps. I don't want to low ball an offer but I don't want to pay higher than market price either (even if the ROI looks promising) so I am trying to come up with a way that would be beneficial for both parties. Since it is a rental management company that is selling the property I was thinking of an offer at market price (about 25% lower than asking). Along with this I am going to ask for them to hold the note with a 10 year repayment term. I was going to do this for two reasons:

1) If they agree to 4% over 10 years this will not only help me out by giving me a lower rate than through traditional financing but it will also allow them to recoop their sale price in the form of interest payments. 

2)  This will get them to have skin in the game. Since they will be the full time management company it will really push them to do their job and keep it occupied. If I have no income then they don't either.

Even with the 10 year terms and the higher mortgage payments I will still be netting a little over $300 a month. I could just wait for them to lower the price at market levels and then make an offer but I was just thinking of a fair deal that will allow them to get what they are asking and also allow me to finance w/ a lower rate.

Has anyone done this? Is there something else that I need to make sure I outline in my offer? 

Any input is appreciated!