All Forum Posts by: Eric Mayers

@Jeremy Tillotson  yes, I paid full asking price because it was a competitive market and I wanted the property because it was a good investment.  

I'm not losing any money keeping it, as a matter of fact, it is cashflowing really well, I just want to take the profits and upgrade to more units.  When I accepted each of the bids I had multiple offers.  I made sure each buyer put eyes on the place before negotiations.  At this point, all of the inspection issues have been addressed, so there is no deferred maintenance.

 My logic is, Just because I got a good deal on the front end doesn't mean I have to sell it for far below market value on the back end.  I'm selling a cash flowing business to somebody, not just a piece of property.  Comps have sold from $236,000 to $275,000 in the past 6 months and the properties continue to appreciate in value at a steady pace.  Rents have steadily risen the area and demand in not ceasing in the area.  

@Kevin Page  

 great advice, I think I'll take it.  It will save me some headache given I've already completed the punch out list from the first inspection. 

lol, Thanks... but uh,  J Scott has about 10000 posts... care to narrow it down a little for me?

Oh Yeah,  and @Christian Carson at what point in the process does it made sense to offer this discount in lieu of waiving the contingency?  After we agree on the initial price or at some other point?

At this point the current deal is dead, however this may be a viable strategy for the next contract, @Christian Carson .   As my number suggest, I have some wiggle room but what would be an enticing enough discount to waive the inspection contingency and would a buyer using conventional financing be able to do that? 

Thanks @Joel Owens Good advice. At what point can you make the funds nonrefundable?  I didn't even know you could do that.  

@Larry Turowski I'm getting great traction and a lot of interest.  I expect to get more now that the new windows are in and I made some cosmetic upgrades to enhance the curb appeal.  

I don't mind inspections and I don't mind getting the work done if its legit. But I think some of these investors are doing the throw spaghetti against the wall and see if some sticks method.  They put the place under contract to lock it up at a price we both agree on but are angle themselves to get their discount on the due diligence period. They have no plans to do any work to the property in some cases. 

I ended up just replacing all of the windows.  It was well worth the $5,500 that I paid for them.  

Greetings BP, 

In 2010, I purchased a Quad n GA for $98,000 and I put about $20K in it to fix it up. I've been occupying it and renting out the other three units ($700 per unit) over the past 4 years and now, I'm ready to sell so I can buy more.  

Well, the market has taken a fortuitous spike and the property now worth between $230K and $260K.   I listed the property originally at $260K.  (though admittedly it needed more than a few repairs)

Here's were the story gets interesting, I put it under contract about 1 week after putting it on the market to a cash buyer at $242K, after the due diligence completed by the buyers contractor, they asked for $10K off my price.  I balked because they didn't explain why. They didn't explain and didn't counter, they just ended terminated.  (hind sight, it needed every bit of the $10K in work that they asked for, so I wish I would have done this deal)

About 3 weeks later, I put it under contract again at $242,000, this time the buyers had a complete inspection, (which I now have a copy of)  which discovered the $10K worth of work (new windows was the major part, some insulation, a few reverse polarization plugs, and cosmetic repair in one unit)  that needed to be done. I agreed to do the work, however they balked at that and asked me to come down $40K off my price so they could do it.  I disagreed and they terminated.  

So I promptly hired contractors to handle the $10K worth of work to satisfy the work that needed to be done, admittedly the property looks 10 times better but its still cash flowing with a solid 9% cap rate. I put it under contract at $233K to another owner occupant investor with a FHA Construction Loan. My logic was, there isn't any thing for them to do but in case they pull something out of their buts they have the loan to handle it. But like the previous two time, after due diligence (on the last day at 9:00 pm) they are trying to get me to drop my price to $217K with no clear indication of why. Get this, their reasoning was "the contractor saw things he wanted to do!?"

But they won't provide me with a list of things.... SMH. They didn't even have a real inspection done but an FHA approved inspector, an Appraisal, nor has their been title information requested.

Is their any way to mitigate this Due Diligence dance before it begins? I mean, I feel these people are wasting my time and theirs if they think I will drop my price for no good reason after we agree on a price.  

Oct 15, I signed a lease with a tenant after screening her through transunion's smart move and calling all references. The tenant paid prorated rent for October and a full months rent deposit. Before November 1st came around the tenant lost her job and could not pay November's rent. I signed a mutual lease termination with the tenant, letting her out of the lease, as long as she forfeited her deposit and moved out by the 1st of December. It's now the 2nd and the tenant has not vacated per our agreement. Since I have the signed lease termination, do I still have to evict to regain possession? Oh yeah, and I have already leased the space to someone else.

Ok, So far I had America Best Choice come out and quote me for 28 Double Hung Window they came back with $8413  installed for vinyl.  I asked about putting in 12 Sliding Window and 4 Double Hung instead.  The price went down to $6762 Installed.  

After I received the quote from ABC, I called Super Glass and Renovations.  

They gave me a quote of $5,560 for 12 Slider Window and 4 Double Hung.   

They also gave me the option of just replacing the glass, repairing springs and putting new screens on each of the 28 windows that are already there for a total of $3000.  

Interesting option, has any one here tried that option instead of replacing the entire window?  What do you see as the Pro's and Cons?