All Forum Posts by: Jimmy NA

Well, I held out and I got everthing I wanted. I got two adjacent buildings, (3 family and 2 family) for 70K and 40k. I also got the vacancies I demanded. As you can see from my original post, it has been over 3 months from when I started negotiating. Thank you to those that told me to stand firm. Thanks to the sober words of posters like MikeOH, et al. I set up a deal sweetiest for ME and stood firm and waited. All the doom and gloom in the media, and bad tenant chooses by the former landlord, resulted in an owner happy to part with his properties. Ok, the dark side: I have renovations to do and we are on the cusp of winter. Upside, I only need 3 units rented (100% of the time) to break even and I have 2 rented right now. Wish me luck.

Can I be blunt? I have no idea what you are trying to say.

Mortgage payments are certainly real.

Rents: 1 paying tenant at $575 per month, no utilities, 2nd tenant was supposedly paying $575 also. These numbers are typical for the area.

She has no lease. She is a tenant-at-will and hasn't paid in 2-4 months. Yes, the landlord "manages" his property in a very loose manner. He lets things slide.....
It will take 6 weeks to get her out.
Yes, these 6 weeks will mess up my plans a a big way. I need to work on the roof over the kitchen and will need access to the house, which I am sure the tenant will make difficult for me. (A leak is causing damage in the kitchen.)
I just feel like I will miss something good for an issue which may disappear in a week, 2 weeks. The tenant could just pick up and disappear one day, and I will have missed a great deal b/c of my fear and uncertainty.

I have agreed on a price with an owner for a (2) family. We agreed on the price of 55K. All dates, terms and conditions were agreed on but one. The owner has a non-paying tenant in one unit. I asked for the unit vacant but he would not give Notice to start the eviction. he says "as-is." I believe he is friends with the tenant or has empathy for her b/c she had her kids taken by Social Services, had a hard life, so-on and so-forth.

Take it with the tenant in place or stand firm? I am worried he will find some else to buy if I do not buy now.

The ARV=110-115k
Property needs 20k in repairs.
PP=55k with 5 k concession for closing costs.

The sites new pop up which requests vistors to register crashes my browser. The pop up is annoying. Wish it would go away.

I am one of these newbies. I hope I am doing "what I know." I ran the numbers backward and forward and every which way. It screams buy. I can flip them or sit on them and still cash flow nearly $85-95 per unit. My intention is to sell them ASAP. Because of the large margin, I think I can work a flip on these even in this market. But if I can not, I will hold them. Is this a bad idea? Am I kidding myself? 1.) PP=75K, repairs 20k,Projected Sale Price= 135K ; 2.) PP=55k, repairs 20K, Projected Sale Price=110k.
At the projected sale prices, these would be the cheapest 2, 3 family props. to sell in 2 years in my market. I would be bringing a very cheap product to market, even in light of this downturn. Thoughts?

quantummail

I have learned that a substantial amount of sales come through connections to lawyers. Do you think it is of value to write a letter introducing myself to local attorneys in my market? Here is some background on me: I am new to my market, though not to real estate brokerage, and am part of an established famly brokerage. Lawyers may know who "we" are but may not know who I am and my background in RE. I worked several years in a large urban market prior to returning to my hometown market.

Do you think this would be a good idea? What is my angle in the letter? Thoughts?

MikeOH-
My argument to the seller was, "hey, who do you think will buy this building with a non-paying tenant?" In other words, the tenant will have to be dealt with now or with the next buyer that comes along. I have a feeling that the tenant is more trouble than I even know, and that is why the seller refuses to give Notice. Can't put my finger on it...there is something the seller is not telling me.