All Forum Posts by: Cody Palmer

Thank you

I have read in Brandon Turner's Rental Property Investing book of his technique of giving multiple offers on the same home for the seller to choose from. He illustrates the power of this technique by explaining the thought process from the seller's mind shifting from "yes" or "no" on 1 offer to "which of these 2 offers is the best?" He explains this choice gives a higher chance of getting an offer accepted.

I have played around with the numbers (i.e. full list price with seller contributing full closing costs vs. lower list price and seller contributing less closing costs). I am trying to figure out where the silver lining is with making the offers advantageous for me, and enticing to the seller. Has anyone tried this before? If so, how did the numbers work out to be to your advantage but also make the seller really have to "choose" between the two? I understand the seller's net proceeds should be relatively close in both options, but just trying to figure out the best way to do it.

Thank you for your time!

@Robert Davis $900

Hi all!
 
I am a 23 year old recent college graduate and new to real estate. I just went in with my partner to buy our first investment home to use as a rental. We paid cash and closed on the house this past week. We are in the process of trying to buy our second home, but I am trying to figure out the best route to take. As new investors, we do not have much cash flow and cash reserves available. From what I have learned, the most profitable way to invest and finance investment properties is to leverage your money by paying the down payment and then letting your money work for you (rather than pay off the home as quickly as possible). Therefore, the best way to get this second home--that I have come up with--is to save up for the 20% down payment and do a traditional mortgage loan.

Our mortgage broker also suggested taking the HELOC route via my partner's personal home. I am not too familiar with home credit lines but I know it can be rather risky. This second home we are trying to buy is at a great deal for $57k and valued at roughly $75k (the first home we bought was also for $57k...these are 3bdrm town homes in the same complex). The first home we bought and this one is through a friend that's an investor. We have helped him in the past with business, so he is cutting us a deal. Time is of the essence with buying this second home and we don't want to miss out on the deal. With the primary factor being little cash flow from the one rental home we already have and low cash reserves, what is my best/most profitable route to take to finance this second home? I see articles all the time talk about little or no money down for investing, but again I am new to this, I am young with not much financial establishment and I want to learn as much as possible and do things the right way. All guidance and opinions are appreciated. Thanks.