All Forum Posts by: Account Closed

They don't teach very much at the free seminar, nothing that you wouldn't get from the book. They do however strongly market their follow on courses which, of course, you have to pay for.

Looks like you're identifying some downsides to this deal. What kind of market are you looking in? Is this the "best" deal you've found or might there be better ones that come on the market from time to time?

I would be sure to get more information on the tenants e.g. get an idea of what kinds of leases they are on, whether rents have increased steadily over time. Do research of other similar properties and try figure out if $1000pm is high / low / average for the market.

You may also want to ask questions about major systems in the house (heating, cooling, hot water, roof, etc.

Just some ideas and thoughts. Good luck.

I don't do warm and fuzzy very well either. The Carnegie book on how to make friends and influence people has great reviews, its a classic.

Ideas to think about:

You mention the guy is out of state. He may not have seen the property in a while and may not know its true condition. If his parents lived there for years, who knows if there is deferred maintenance? Or the house is really outdated? You absolutely need to see it and run the numbers and come with the right offer price.

Don't start worrying yet about whether your offer will offend. Go with an open mind and let the numbers point you in the right direction.

So curious to hear how this turns out. Let us know once you saw the place. 

I like my day job for the most part. Not saying I don't have the occasional day when I do dream of quitting it but for the most part I get to earn a steady paycheck while ploughing money into my investments (property and otherwise).

For now, I'm not a quitter. But I am a believer!

Give him your best offer (even if its $700K). I have explained to sellers that as an investor, I can't (and won't) compete with motivated buyers as my purpose is different so my offer may not be the highest they get. Even if I want the house, I can't blame them for wanting more and I tell them that I hope they get the best deal that's right for them. I'm guessing since the guy responded to a yellow letter despite having the house listed on MLS, there may be some factor that is making him anxious to sell?

You could indicate any advantages that your offer may present (different things are attractive to different sellers for different reasons): that because you already have financing lined up and you can offer a quick closing. You may be willing to take the house as-is without an inspection. If they need to leave stuff that you'll take care of the clean out (e.g. in a decease estate situation), etc. If they're facing financial difficulties, you could offer a 6 month lease at slightly below market rent to give them time to get alternate housing. This is just off the top of my head, try and get a sense of what may be important to them.

Then say your offer is firm for 2 weeks (or whatever you're comfortable with), after which it can be considered a standing offer that may be dependant on other offers/properties that may come along. I do think that on paper an offer should have an end date. You don't want someone coming back 6 months later insisting that you honor your offer when you've moved onto another deal and your capital is tied up.

@Edward Briley 

OK, I'll bite... I guess its worth what a buyer is willing to pay for it.

How much is that? Try researching comps in the neighborhood. Tip, don't use the asking price on MLS for your comp, look at the prices of actual homes sold.

As an exercise, do some research into similar properties in the area and confirm whether you think his estimation of value is accurate or not. You can never have enough practice running comps.

That being said, it never hurts to put the word out there to your friend that you are looking into real estate investing. You could ask questions and learn from him about landlording (he has some experience). And maybe 2 or 10 years down the line, it could be  deal.

Consider him someone in your network but no, this isn't a deal right now.

What exactly constitutes a "huge" deposit? If this is a known cost of moving I would be concerned that they hadn't planned for this.

I would not make myself responsible for someone else's utilities (as others have explained). If this tenant wants to move in, they need to figure this out for themselves. If they can't move in because they don't have this deposit, keep showing the apartment until you find someone who does.

Thanks Darren, I'll be there!