All Forum Posts by: Account Closed

Did you look at the property yet? If not - you will not have the answers to your questions until you do!

Have you made a "Trial Offer" if not - you may not have been able to get to the seller's base line price.

As you know a "Trial Offer" is one that is below their asking price that is intended to smoke out their base line and to find the true motivation of the seller.

Have you used The Power of Negative Thinking (see my blog here on Negative Thinking) - if not try it, it may work for you with this deal.

Charles

Go with the agent unless the agent refuses or will not present your offer. You should ask for a formal reject from the seller - this way you are assured that it was presented and as for a counter offer.

 The commission is being paid by the seller - an agent can be very helpful - make sure you treat them with respect and demand respect from them - you need to ask the agent questions;

• When was your contract presented - date and time ?
• Was if verbal on the phone or in person?
• Why was your offer reject - give reasons - price too low, terms not acceptable - didn't like the contingency - had another offer - off the market ---etc.
• How much will they take? 
• Will they consider any owner financing? If so you can offer more - when asking for owner assisted financing all ask for principal only mortgage that is as you know is a mortgage without interest, make sure it is fully assumable without qualification with no balloon payments.

Now that you have a base line price that you may be willing to pay - what you should do is to look at other properties in the immediate neighbor that are FISBO's or listed and than make a 100 post card mailing to all neighbors - drop off flyers in the neighborhood - "WANTED - Real estate - any condition - houses or commercial - family business - no commission or settlement costs - we are not agents - please call if you have real estate to sell."

Ask your agent for all the expired listing for the past 6 months - go visit them ask "Are you still accepting offers?"

Do this and you may come up with a better deal - this is PRO-ACTIVE and you'll find this type of farming works very well. You should know how to 10 ways to make an offers on the same property - I know this is a little creative, but it will work in your favor when you are able to make 5-10 offers on the same building - all of which will leverage you into a great equity based transaction.

Call if you need help - wishing you good luck.

Charles

Why would that list help you?

Title companies are regulated by the insurance commission since they are selling title insurance - that might be a good place to start -

If you ever have a complaint with a title company - the insurance commissioner is where you need to go.

As you know there are good title companies and very bad ones - I know of a title company that instead of forwarding the proceeds  to the seller - they kept them - they are in prison now serving time to compensate for the $800,000 they kept.

Charles

I have done a number of 1031's - they are great for saving money in taxes - the 45 day rule will kill the deal if you are not prepared -

If your main property is on the market now - it is time for you to start looking for the three properties that you can designate for the exchange. 

• If you do it right - you'll need to understand that you can pay a little more for the replacement property since you should be saving a ton in capital gains taxes and ---
• you can sell for a little less  - you don't need top dollars since you are saving so much.
• I would consider listed properties but also do a direct mailing to owners of commercial and residential properties - buying directly form owners should save you many dollars and help you increase your equity position. If you you find a listed property that will server your needs with an agent - make sure you low ball your offer and make it subject to a satisfactory 1031 exchange.
• You letters and calls to property owners should be direct - "I am writing to you because I am selling my property and I need to find another like kind (investment building) in order to save capital gains - I am doing a 1031 Tax Deferred Exchange, because of the 1031 exchange I am paying cash. You may want to add "You may want to consider the 1031 tax deferred exchange of your property also."
• If you need any more ideas - feel free to call me ---

Wishing you good luck,

Charles

Do you own this unit? I could be interested.

Charles Parrish - auctioneer

Water bills and the lack of support from the City for business people and development is a prime reason to leave Baltimore or get active and start controlling houses and commercial properties in a town that I have been in now for 74 years.

I own houses and commercial properties in Baltimore and it has been good to me as well as profitable - but there are times with the negative aspect of this city - the politicians and lack of support - makes me sometimes rethink my Baltimore activity.

My son, Ian, just wrote a letter to Congressman Elijah Cummings, in part it said this:

You know, the Great Baltimore Fire of 1904 is known as one of the largest catastrophes Baltimore has ever faced. 1,500 properties were destroyed. Today, there are at least 30,000 vacant properties in Baltimore; and the City itself is responsible for 7,500 of them. That's unacceptable. 100 years ago, Baltimore averaged 40,000 new residents a year. Last year, more than 5,000 people moved out. And there is less hope in Baltimore communities today than there was 200 years ago when the Underground Railroad welcomed more freed slaves to Baltimore than any other city in America. Baltimoreans are angry, and they have good reason to be.

Charles Parrish

Thanks for your vote Joel. 

Been investing in Baltimore for over 40 years - still find great equity deals here. As an auctioneer and consultant I see great transactions all the time; commercial and residential - the secret to equity success is to make many offers all the time. 

I use the Control and Roll system to flip properties here and in other states, and use a Skinny Contract to accomplished great results. 

Good for you - I have discovered long ago that a seasoned investor knows lots more than an agent - agents are trained to protect their broker, represent buyers, list properties and to stay legal - I have always inferred that if agents knew what investors know - they'd be investors  representing themselves.

Keep your offer simple - you don't need all that stuff that agents are required to have in their offer (you know agents do not write contracts - they can't unless they are a attorney - they can only legally fill in the blanks on a form contract of sale) - so over the many years of investing - negotiating - developing and trying to make money in real estate - I have the good fortune to have created what I call my Skinny Contract   - this is a one page contract with only one out clause - it is easy to understand by the seller and all involved in the chain that reaches to  the settlement table.    

DISCLOSURE; I am not picking on agents - I am a broker - I understand the culture - been there done that!

Contract engineering clauses that may help you ---

• Owner financing - "Seller to carry a first subordinated mortgage at X% for X years" This clause lets you get a new first mortgage and have your seller financing in second place. Used correctly you'd be able to create mortgage cash.
• Ask the seller for a Principal Mortgage -" Seller agrees to take back a first subordinated principal mortgage with payments of $900.00." What this means is that there is NO interest payments - all payments go to pay off the mortgage and you can put it second position.
• On the clause above you can add that the mortgage is fully assumable with out qualification. This make it easy to sell the property with this financing.
• If later you sell the property that is a NO Interest mortgage - you can do wrap and charge interest - in this case you are making money on money you owe - get your calculator out and figure out what your yield will be - off the scale!
• Nothing settles on time - we investors are always on the clock, usually running out of time due to any number circumstances - contractors - assignee defaulting - code violation - delay with title companies - and so on - So ---- what do you do - go to the seller to ask for an extension? Yes - but suppose the seller doesn't want you to make your equity profit of $30,000 and won't give you an extension?  What now - walk away from your profit and all the work you did? NO!------ Build in the extension when you create the contract - "Seller agrees to extend the settlement date by 25 banking days if necessary to complete title work or to accommodate the assignee." Never write an offer without this clause - you'll thank me later.
• You found a deal - it looks good - you have a potential of making $50,000, you intend to flip this property in a short period of time (maybe have a reserve auction)  ---- your offer price is close, but the seller wants more - You can offer the Seller a Hybrid - "Hybrid - It is understood that the price is X-$, it is the Buyers' intention to assign this property within a short period of time, the Buyer will pay the Seller 10% net on anything over X-$ at time of settlement." The Hybrid agreement gives the Seller an incentive to do business with you. It creates an understanding - the Seller wants to see you succeed - because when you do he also benefits.
• Always make full disclosures, do not try to get over on anyone for a profit - be kind and open - One of the most important thing I do when negotiating with sellers is to tell them; "My goal is to make a reasonable profit."
• Sellers want to do business with people they like, understand and perceive their honesty.

Charles

That sounds like fun - I have been in the real estate business now for 48 years as an investor, auctioneer and teacher. I teach creative financing and real estate formulas as well as contract engineering and power prospecting, own a portfolio of houses and commercial properties.

Charlie