Good Evening BP,
I am relatively new to Real Estate investing. I have 3 SFR rentals and 2 more houses under contract to purchase as rentals in the next 4 weeks. My strategy has been BRRRR so far and plan to continue to do it till I meet my freedom number or my bank cuts me off for financing more rentals. Which ever happens first. My goal is to hopefully always have one in the pipeline so as soon as I have one rented I can move onto rehabbing the next, and hopefully do it again and again and again. I have run across a property and I was hoping for some advice on how to make an offer.
My question is, how do you word your offer when someone is asking a ridiculous price for a property? The property I am referring to is a Duplex that needs 30k to 40k in rehab before its rent ready. It Has been vacant for 2 years and is literally falling apart because roof and siding leaks. I value the property at 25k to 30k tops with it needing about the same amount of money or more in rehab before tenants could be moved in. It is an off market deal a realtor showed my that he said is owned my one of his friends who lost interest in trying to be a landlord. He told me his friend would let it go for 60 or 65k. I have gathered that the realtor is trying to take me for a ride and was actually impressed that he was able to say that number to me with a straight face. On the other hand I am still interested in the property. What would you do?
1. Go around the realtor and try to connect with the owner myself to get a deal done?
2. Call the realtor out, let him know that I know he is trying to take advantage of me, and then say we both know the real value of this property, my offer is X ?
3. Walk away and keep looking at other deals?
That's what I have come up with for options, does anyone have other suggestions? I appreciate any feedback you have. Thanks
Drew
