Need Help with Negotiation

[Angie Anderson]

Hey family,

Need some help from the more experienced investors out there. My dilemma in a nutshell is: I let go of a contract because the seller did not meet my terms on inspection repairs. Now a month later, after moving on, the seller has agreed to meet my terms, only now interest rates have continued to up and stuck. Below are some details.

Original Deal

$345k at 2.75% with $5k in seller concessions

After inspection, asked for $14k in repair costs.

Seller said no.

Current Deal (he's like a bad ex)

$345k at 4.125% with same $5k seller concessions >:/

Now agrees to $14k in repairs

Bottom line, this is appx $250/mo loss in cash flow. The numbers still work above 12% COC but I'm @$$ hurt with the loss because of no fault of my own! The seller is also an investor and I suspect he knows he stepped in poo by letting the contract go a month ago, no he's scrambling. My realtor calculated he would also need to drop the sales price by $40k to break even with the previous deal, which I highly doubt he would entertain. Better to shell out the $14k then deal with the $40k loss.

My question is, how do I negotiate this and what's reasonable? I'm equally not pressed having let the contract go before...I can simply walk and keep searching as I have been since the contract fell thru or I can shoot my shot and I've lost nothing if he says no. Looking for reasonable ways to attack this.

Thanks family!

[Matt Ziegler]

Angie,

I think you need to be clear on your long term goals. Does this deal move you in that direction? Is yes, move forward, if not, keep moving.

The rate change isn’t the sellers issue.
What are the current rents like, market value or below.

How will this property perform I’m 3 yrs., 5 yrs.?

You might ask the seller what concession they will make due to the issues , but I wouldn’t push it too hard. If you plan to keep this property, will it matter in 10 yrs?

Best of luck