All Forum Posts by: Nathan Harden

Your only/best option is to find a seller finance deal. If you need, partner up with a buddy. 50% of a deal is better than 0%.

Quote from @Jack B.:

Quote from @Nathan Harden:

Just ignore him. If he wants to try and get some higher up authorities involved, then go from there if that day ever comes.

Call his bluff essentially. Then if he continues to bug you, bring up the driveway and ask if he wants to go down the route of the fence then you'll explore the driveway issue at the same time.

 I was able to find this after all, even though the county records showed no easement, a document search showed one. It was granted to some water company, but it looks like what I suspect to be general easement terms for ingress and egress that would give him right to use my driveway after all, bummer...

 I mean, do you think the guy would ever be able to find this...? Or put in the effort to find this? I still think you sit back and call his bluff about him doing anything about it. Again, that's just my opinion.

0.00%

Why would you want to do that? Help me understand more of the situation. I hope that I'm missing something.

I have personally been in this situation. I talked to a couple people and they told me to swallow my pride a little.

I need a little more info.... So is this like a husband and wife? Is the one tenant covering the entire rent or just their half? If that one tenant is covering both halves, leave it be. If one of the tenants is paying the entire lease, then I would just ask the non paying tenant if they wanted to be removed. I love having my units full and rent coming in more than I love to tell people that they're in the wrong. It sucks, but money in your pocket every month doesn't. 

Just ignore him. If he wants to try and get some higher up authorities involved, then go from there if that day ever comes.

Call his bluff essentially. Then if he continues to bug you, bring up the driveway and ask if he wants to go down the route of the fence then you'll explore the driveway issue at the same time.

 Off market. Got the lead from calling local landlords.

 Chris, I appreciate the response. I never want to pay over market value in all honesty. I noticed that you said you wouldn't pay above market value "right now".

Like I said, I never want to pay over market value but What are you seeing in the market right now to especially not want to over pay?

Alright. I have thrown multiple offers at a seller that only wants to sell his properties via seller finance. I have thrown about 4 offers out his way and at this point it almost feels like I am negotiating against myself. He didn't even give me the numbers that he wanted until I gave him the last offer and it "offended him".

He originally told me that he wanted $5k in passive income of just interest only. Told him that I was not the guy for that because I needed to one day OWN real estate so attacking principal is a day one necessity. Went home plugged in a purchase price of $1,250,000 ($625k for each duplex) then 10% down with a 3.5% interest rate to get him his $5k a month.

He told me a 10% DP wasn't enough, didn't like the purchase price and asked If I was serious with a 3.5% interest. 

Then I told him that I was walking away because I obviously didn't know what he was looking for and I wasn't going to just negotiate against myself without even having a remote idea of what he was looking for. He came back with "off the top of his head numbers"

$675,000 pp for each duplex (market value about $625-$650k)

$100,000 dp each duplex 

5% interest

7 year ballon (Amortized over 30yrs)

Not terrible. At least I got some numbers. 

Here's some back ground on the 2 duplexes combined.

Fully occupied at $9k a month in collected rent. 

$13k in yearly taxes between the two duplexes

About $200 a month in water between the two (no sewage, on septic) tenants pay all other utilities

Insurance- $200 a month

Self managed

I truly feel like I have given him some real win-win offers and nothing is sticking. Yes, I get it. This may be a dead end but the fact that he finally at least gave me some numbers shows me there is a glimmer of light at the end of the tunnel. Really, my biggest concerns are monthly payment and down payment. I can give him his asking price if he helps me out with the terms. I don't want to put $200k down so I would love to hear how else someone would structure it with only $100k down and then wrap the other $100k into a monthly payment. 

I have a couple of seller financing deal structures under my belt, but that does not make me an expert. I would love to hear from everyone else on what their thoughts are on creating a win-win. 

I hate to say this but... This probably isn't the last time you will be dealing with a stubborn tenant. Take the good with the bad on this one. Use it as a stepping stone and learning experience so if and or when this happens again, you know exactly how to handle the situation.

Get on local Facebook groups and reach out to wholesalers directly on there. Best place that I have met wholesalers besides local meetups.