OfflineA 2-Unit building came up for sale next to another rental property that I currently owned, so kept an eye on and based on the market waited unitl it was on the market for a while before approaching.
After doing the math on the Income/Expenses and looking at financing at %5, the monthly cash flow was around $350, so I had my agent submit an offer. $94K with $4k toward closing, 10% owner financing at 5% ballooning after 5 years, and $8K submitted to buyer after closing for misc. repairs.
Final P&S attached....My agent was shocked that they went for it!! You do not know until you ask! My agent had discouraged me from submitting this offer orignally, but apologized when they signed. Proof that it can be done. When I receive the $8K check after closing, I will only have $2K of my own money into this buy and hold generating $3600 in Cash flow annually, what is that ROI?
My hope is that this gets folks on the edge to find a realtor that will submit offers!! But make sure that there are a few signs of Motivation on the sellers behalf!
Luck is when Preparation crosses paths with Opportunity!
Its funny how realtors are against this until it works, just think how they could of helped others if they gave them better advice on offers. Congrats on the new purchase. I have a great friend of 15 years that is a realtor, I had talked to him for years about Dean and his stratagies and he always shot me down, this can't work, that's not right, but in the past year or so he has come around. He got layed off from the job we worked at together and is totally 100% into real estate, as an agent and investor. Brought us a wholesale deal a few months ago that we turned down but he did ok with it, he brought another deal to us yesterday and we met him at the prop last night and he put in the offer for us to partner on it. Dean and this site are second to none, I promote him all the time, usually with laughs because folks don't know the real Dean. That's ok, I probably shouldn't tell folks so much, they end up in the same areas as me then. Have a good one!
SEMPER FI
GET SOME!
What a great deal. It definitely shows a lot of creativity. Like you said in the post we never know until we ask. Unfortunately if we don't ask we may miss out on several deals that would result in tens of thousands of deals.
There is almost always a way to make a deal work out if you are willing to think a little different and find a solution. Congrats on a great deal.
Chris
"Faith is the eternal elixir which gives life, power, and action to the impulse of thought.
"Faith is the starting point of all accumulation of riches!"
- Napoleon Hill, Think and Grow Rich