All Forum Posts by: Jonathan Jewell

@Jay Hinrichs.  I know it.  Pretty much all my money is tied up in mobile homes, which I'm diligently trying to liquidate some of them to free up that capital.

@Ray Lai   I sent you an email.  And yes you are 100% correct in that assessment.

@David Weintraub   Thanks David, I'll give them a call. Appreciate it!

@John Leavelle   Yeah I know, it was a strategy to go in with the least contingencies as possible, to keep the contract straightforward and simple as possible so the seller knew I was serious.  Well it worked!   lol   Not sure how true, butfrom what I was told, turns out I beat out a few other offers that were at a much higher price but were loaded with contingencies.

I really hope your tenants are ok, and find suitable housing during this crisis.

Hello fellow BP'ers   Original post was how should I make the offer which is here.   

https://www.biggerpockets.com/forums/432/topics/47...

<<<PART 2>>>

I now have this multi-family under contract!!!, but already have hit a bump in the road and really could use your help on this.    I'll keep everything short and to the point because now the clock is ticking.

Thought I had a private lender backing me on this, turns out he was flake, all talk all flash it was all BS. I made an offer with the intention of going in strong, $42k below listed price waiving most contingencies with a 45 day close thinking it was no problem.  Seller accepted my offer but now no financing, no backer in place.

Went in to the listing agents office with my hat in my hand.  The listing agent is a broker owner of the realty company and is very old, and pretty much has seen it all.  Explained what happened, and seemed a bit sympathetic until I gave a new offer with $20K down with seller holding a short term note for 1 year.  Agent Flat out refused, said he will advise his client (seller) not to take that deal, not for 20k down.

He countered with $20k down for a lease purchase with seller collecting the rents to go towards purchase price until I exercise my option to purchase.  I explained I don't have $85k laying around, it would be better he could hold a note so I can do a rate and term refi otherwise I'm back in the same position again of coming up with 25% down in 12 months.  His response was I don't care, this is not about making things easy for you its about whats best for my client, and $20k down to transfer ownership is just not cutting it.

I really don't like the lease purchase idea or ther terms with it.  So questions I have:

1) Does ANYONE know anyone that will do 85% LTV short term private or hard money in Pennsylvania?

2) Is there hard / private money for down payments?   for instance.  I offer seller 80k down if he carries a 1 year note.  40k my funds 40k Hard / private money.  Deal gets finalized and all parties are happy.

3) If options 1 or 2 area no go.  Do you think offering $40k will sway the listing agent and seller to go with my short term note plan?

4) Anything to add that I may have missed?

As always, thanks in advance for the help guys and gals.

@Christopher Blanco.  Wow thats good to know.  Yeah, I estimated doing everything myself, and not accounting for my labor.  Its a bad habit that I'm slowing getting out of.  You know I don't know WHY or how I forgot to mention this but here it goes.  This is a 6 unit apartment complex with NO, HVAC (Only window units.  ONE heater for all the Units and ONE 40 gal water heater shared among all the units.  Is that even code???  None of the residents complained to me about lack of heat or hot water when I specifically asked them (Do you have heat or hot water issues)  All of them said no.  Its just insane to me.  I put  40gal WH in mobile homes, let alone a whole building running off of one.

Not sure why the links didnt work in original post but would really appreciate your thoughts on this as well. @Cody L. @Andrew Johnson @NaDean Bowles             

Thanks for the advice guys!   I just wanted to clear something up.  

When I asked the question in regards to option #1.  Its not with the intent of hammering the seller on every nook and crany in regards to repairs to get the price down.   Its with the intent to "tie up the property" per se, and reasonably ask for a lower price based on the appraisal and inspection.  I mean there are some glaring obvious issues standing out like a full rotted and soaked wall, broken windows etc.  Its obvious to everyone  (seller, seller agent, myself, partner) that, those things will have to be addressed.  I was just thinking it would benefit all parties involved knowing phase 1 is complete (a contract has been signed and we can move forward with the rest).  

Reason I wanted to clarify is some in some of the responses, I got impression that I was some sort of scumbag investor going in high and then hammering the seller till hes black and blue, waiving a signed contract around.   That is 100% not my intention.  I am a graduate of the win/win school of negotiating.  My philosophy with a business transactions has always been, if you bump into the person in the supermarket are you still friends afterwards.  I was just asking advice on how others present their offers, since this is newer territory for me.  Thanks again for all the input.

@Kimberly Keesler, any other contingencies you put in place on contract other than appraisal and inspection?

Not too far from me so count me in!  Should be worthwhile.  Seeya then!

Update .  The owner and I have gotten to know one another really well.  We had a tail of a twister come through the area a week ago, and sure enough it went through the Marina and caused a lot of damage (docks, powerline telephone polls etc. )  So he's now twice as motivated before.  Spoke to an appraiser, that does land and Marinas, and gave me some good advice as far as the permits and zoning without getting too deep.  So next week we have our final sit down, see if we can hash out some realistic #'s and keep this train moving forward.  Again will keep you updated, thank you everyone!