All Forum Posts by: Scott Garrels

@Lynnette E. Thank you for your reply here.  So I see your point.  You should know what you want going into the negotiation so you can give the appropriate initial offer.  Got it and makes sense to me.  I do try and keep emotions out of these deals, but I see how this can impact the strategy.

@Dan Maciejewski I appreciate this tip on sources to check out.  I will look at both books and see if I can find the BP podcast on the second one as well.  Actionable ideas and tips are HUGE in my opinion since that is what most people typically fall short of in most endeavors.

@Herndon Davis Thank you for this reply.  I certainly understand what you are talking about here.  I know my strengths and also most of my fault areas personally.  I have assembled an initial team that honestly compliments many of these fault areas very well.  Our team includes probably the best property manager in our entire state (Iowa) with asset management experience as well, GC with 20 years experience, private investors, brokers, and other property owners.  I am still looking for a few spots but have been pretty selective thus far.  I guess my point is I am open to learning from anyone and will take your advice when it comes to saying let me think about that whenever necessary.  Thanks again.

@Nate Marshall Thanks again Nate, this is really good insight.

So this set up has the functional groups separated out to isolate each into their own LLC. I assume this provides limited risk for each area somehow, correct? 5 total LLCs based upon this structure, if I understand correctly.

@Kerry Baird Thank you for your reply here.  So does this set up provide specific benefits simply because of where your properties are located OR does it bring in others as well?  I know it may seem elementary to you perhaps, but I am wondering why you could not set up one in TX and hold both TX and FL properties there for example?

Hello,

I am still relatively new to REI and to BP. I wanted to seek some experienced guidance regarding Negotiating skills, a critical piece to success in this field I am sure.

If you have a deal that meets your targets and you have identified your max price point for an offer where is the best place to start?  Do you start at 80% of your max or some other spot?  At what point would you try and negotiate terms to offer a better price for the property?

I realize each deal has its own unique factors, but a general idea here would be extremely appreciated.

@Nate Marshall Interesting indeed!  Are teh 42 for the properties considered "child" or "satellite" LLCs?

I would be interested in understanding the benefits this structure provides.  Thanks again for the info Nate.

@Nicole Heasley Beitenman  thank you for your reply and input.  It helps to get concurrence on this topic for sure.

@Nate Marshall

@Nate Marshall

@Tim Herman, thanks for the tips.  I truly appreciate it greatly.  More work to gather the other  info you mention, but that is part of the fun of it.  :)

Thanks so much once again,

Thank you Amanda for you reply.

Tim, thank you for your reply also.  I will try to answer your questions below.

The reason supplies, advertising, legal is because those expenses were specifically called out in the Pro-forma I received from the owners.  That is also part of the reason PM is lower.  I agree that capex is a concern as well.  I will validate that assumption more closely.  Thanks again for your insights here on this potential deal.