All Forum Posts by: Wes S.

I wanted to open a Dialogue on the 'Art of Negotiating.'

Just curious as to your tactics and way you go about offering, renegotiating, closing a deal, ect.

I'll pitch a few questions to get the ball rolling but add yours to the list:
- How do you explain your point of view on pricing the deal?
- How do you approach a potential 'Low Ball' without pissing the seller off?
- Do you reneg at the last second?
- Is is appropriate to make friends with the sellers? or stay distant until deal is done?

Whats your opinion or 2 cents?

My goal is to uncover the proven successful strategies that others can use down the road. :D

I Live in the Midwest and have a few Rental Properties with older furnaces, I mean 4'x5' Beasts, that are gas guzzlers not to mention they may quit at any time.

I've seen a lot of 10-15 year old Heil's, ComfortMaker's, Rudd's and other furnaces in classified ads for around $100 +/- that people have kept after updating their home (and being upsold by the furnace guy)

I'm thinking about buying these up for inventory for the unforseen day when I need to replace an old beast with something half way decent.

2 QUESTIONS:
- What do you guys think about this thought?
- Installation experience needed or steps to complete?

Thanks!

Thanks Sean....

BOA and CW are really getting on my nerves for sure but patience I know is key in these deals...I'm just trying to put as many deals in the hopper and they'll all spit out at once....

and yea, that would be helpful in a deal when you're doing the BPO, haha. That is awesome!

- Think Big and Kick ***
- 4 Laws of Debt Free Prosperity
- Think & Grow Rich
- Magic of Thinking Big
- Twelve Pillars
- The Greatest Salesman in the World
- The Secret
- How to Win Friends & Influence People

The better you are with your People Skills and bigger your network is, eventually you build yourself a Sphere of Influence and RE Deals will be flowing your way. Your RE Experience and Knowledge will expand IN THE TRENCHES!

Good Luck

Working with BOA on a Short Sale and have several others just getting off the ground...

My question is...What is the likelyhood and legalities in Iowa in reference to Deficiency Judgements? I've called the State but they don't have an answer for me yet...

The homeowner obviously doesn't want to do the deal if they may be pursued down the road for $25K+ difference between whats Owed and Short Sold for.....

Should I try to get the bank to Accept a 'Payment in full without pursuit of any Deficiency Judgement?' but I think the odds are fairly slim they will accept.

Anyone have any experience or angles to approach?

Also....For future deals....I lowered my price with the Phase II Negotiator $25K in the process AND I put in a 'Buyer Expense Fee' of 2% of Purchase Price and it was approved!

Used Time, lawyer expenses, other things outside of deal that was costing me money to Justify Fee.... :)

I also ask what the BPO is everytime I get a Short Sale Rep on the phone, even though they aren't supposed to tell us...Eventually....Loose Lips Sink Ships.

Hey Sean,

I'm Curious...what did the BPO's say on Yours with BOA?

I'm working with them on a Shortsale and my offer is $43k on a place thats worth about $70k but they have BPO's coming back at $73k+ (BullS).....I know its 'Chicken Feed' compared to what your doing but curious on % and approval ranges....

I've also heard that their 'Acceptance Range' is roughly 80-85% of what BPO is.

At any rate...way to go! Short Sales are aggrevating but deals are there for sure. This is my 2nd one for the year...other one was 19 acres, old Farm house that rents for $500/Mo, bought for $122k but is right next to an expanding Assisted Living Facility....Major Development ground or I may Build a ALF....Cheers!

The thing I see is the long term investment...Fast forward 15 years when they are paid off & rents are around $500-$600+/House, thats an extra approx $4500/Mo Income Stream. (Granted, a major Inflation train is coming down the tracks)

I'm 26 so I feel time is on my side and if we want to sell for kids education or business ventures or for extra dough, we'll have that option.

I bought 3 houses 2 years ago, they cash flow and figure I could make $15k per house right now PROFIT. This deal you have a couple houses you could make $10k on, another $25k in a couple years. I figure its about a $310k-$320k Package (Conservative) Retail right now if he were to go through and sell them outright. However, putting 8 houses on a market in a town of 5k ups the supply/capita %! haha. WHY DO I LIVE HERE AGAIN?

I definitely think there is money to be made but at the same time, like Jon is saying, why bust your balls for an extra $100/month.

I appreciate everyone's wisdom and opinions! I'll keep you posted and welcome any other insight. Thanks!

You're right...I am talking out of both sides of my mouth...thanks for calling me out!

He may carry a contract but he wants 15-20% down, 5-8 yr balloon on 30 yr am around 6%.

I agree, at $375-$425/Mo Rent, the profits are skim for sure. The market needs to be $500+ but a $500 mortgage payment goes a long way in this area.

I don't mean to be evasive....The reason why I'm unsure of some of these numbers is he initially had a 12 House Package but I threw out 4. 2 he has for sale and I'm not paying retail and the other 2 were in smaller towns worth virtually nothing so I'm trying to adjust with those out of the picture.

Thanks Jon & Eddie for the Help and Analysis.

I agree using the Assessed Value is a Joke and I'm not sure exactly why he brought that to the table. He did argue with the Asessor and that is why the 09 is much lower than '07...Our area hasn't seen much of a drop in home values like the rest of the country has either....too insulated.

To give you an idea of our area...were a town of about 5,000 people, the Rental Market is Very Good....vacancies aren't there, especially, with a single family homes (usually takes less than a week to fill.) Seems to be a shortage of rentals (especially Clean & Quality which is what we have.) I see what your saying with Higher Properties and less headache but in our Market, if your over $500/$550, your not going to rent it as fast and your turnover is going to be much higher b/c tenant can afford to buy within short term.

You could sell a 2 Bed house, in Good Shape in this area for $45k-$60k all day long! 3 Beds your around $65k-$75k and that is about 90% of what Realtors are listing them for. So some Entry Equity is there.

Another thing is the Old CashFlow vs. Appreciation. Most of these properties are the Worst house in a Good Neighborhood. 1 Home has Commercial Lot Potential, on the corner of a really busy intersection, kiddie corner from an orthodontist.

I do most of the work and manage all properties by myself to increase profit although almost doubling portfolio would spread me thin.

More info to chew on...I am still getting used to this blog thing so I may add more $'s and #'s for you soon.

THANKS AGAIN & Happy Hunting!