What's the most you have offered under asking price?

[Drew Bell]

How did it go? And did you have any lessons learned?

[Bjorn Ahlblad]

I offered 25% under asking for a really nice 12 unit in a good area. The offer was not accepted and I found a better 12 unit in another nearby city which I did buy. The original 12 unit caught fire and six units burned completely. It has remained unoccupied for 3 years. Maybe insurance covered it all-maybe not. My 12 unit is performing beautifully, and no regrets. 

I found a beautiful duplex, they were asking 339,000. My broker offered 280 cash as that was all I had left in my 1031x.The seller was getting divorced and the offer was accepted. That was just before the market went absolutely nuts in 2015.

What you pay relative to asking is less important, what can be far more important is how you can reposition the asset and how much more profit you can make by optimizing the property.