All Forum Posts by: David Mathews

@Mike M. Great! Thanks for the insight. I was worried that it may put my offer at a disadvantage to other more formal offers. Or possibly open the door to multiple offers while mine was just floating around as a "hypothetical" offer.

I viewed a property today and made an offer within an hour or two afterwards. Through talking with the realtor (the listing agent) I found out that it is heir property and the heir just wants out. I made 2 offers. One deeply discounted with conventional financing and all the inspections along with a few contingencies. Also one with seller financing slightly below asking price with favorable terms. To my surprise the realtor asked if I mind that she present the offer verbally. Why would she want to do that? I sent my offer with brief explanation as to how I arrived at the numbers to her via email so there wouldn't be any confusion in wording. Something I've done before. It would have been very easy to copy and paste to a buy sell agreement. Should I have said no to her presenting verbally?

FYI I did say yes to it but asked for 2 things. #1 that she forward my email to them after speaking with them since I basically wrote it up as a letter of intent just as I would if for sell by owner. #2 I asked for a response within 24 hours so that I didn't create a bidding situation. One where they hang on to my informal offer for a period of time while waiting to see if something better comes along.

I'm really interested in how this deal turns out for you. I bought 2 adjoining properties from 2 different sellers on a side road just off of Big Lake road in Lake Charles almost a year ago. I had intentions to do duplexes on it but a motorcycle wreck in February kind of threw a hiccup in my plans. Since then I've been considering possibly doing what you're planning. I don't know anyone who has done something like that though. 

Right now you do have to be very careful.  I dont feel like it's impossible to get a good deal but it is very difficult for a few reasons.  Due to the industry boom the market was flooded with investors, new builds, and fresh rehabs. This time last year rentals would rent the second they hit the market.  With mine I noticed a huge downturn in demand every since some of these projects have completed. Now there are much less renters but tons of new apartments and appealing rehabs. I've noticed several listings advertising more and more with move in incentives like free 1st month and such. As far as deals go it seems that they have slowed significantly as well. I could be wrong but I have a feeling that it is going to get worse before getting better.  Again... it's not impossible to find a cash flowing property but more difficult than it was a year ago. I'm hearing there will be a few more projects kick off after the 1st of the year. A lesson I've learned is the old location location location adage. I'd suggest staying south of I-210 simply because it is more highly sought after.  That will cut your competition down significantly when advertising a vacant unit. 

Hello. I just saw your inquiry.  You're welcome to check out my project but I'm not so sure I'm the right person to follow.  LOL I'm working on number 4 that's kind of a 4 plex converted over from a single family residential.  I have a couple of buddies I work with at Citgo who are doing rehabs at the moment as well. We all pick each other's brains on the process so you're welcome to join in if you'd like.  As for new construction,  I'd love to learn a little myself.  I just purchased an acre off a little side road from Big Lake rd and trying to figure out what to do with it.  It's zoned R2 so duplexes are allowed.  Hoping to go that route but it seems so expensive and build! My girlfriend and I are talking about partnering up for that project bc she has a lot of contacts with doing a project like that.

Anyway... if you'd like to swing by my mess of a project just let me know. 

Chat with you later.

David 

@Adrian Tilley I am working on my 4th. 3 SFR BRRRs so far and this fourth that I closed on in the middle of December, is technically a SFR but it has a very odd layout which I plan to convert to a 4plex. It's already being used as a 3plex by the sellers and I have 2 tenants in place. I was impressed that I was already able to benefit from their rents in January. One paying $750 and one paying $775. My negotiation for this one was quite odd as well. In order to get the property at a price $45k below appraisal I negotiated an offer with the sellers staying in place rent free for 12 months with me having full ability to rehab and freshen up the rest of the property. So far so good.

I am in Lake Charles. I'm curious what area as well?

Same here so I'm following this post. I've been using Carson & Thompson Accounting on Common St. I think Carson is very knowledgeable and thorough but I feel like its time to find someone who specializes in real estate.

@Eric Upton Nice to meet a fellow LC investor.  Sounds like we are on the same path. It's currently a tough market in our area but sounds like you're killing it!