All Forum Posts by: Jonathan Polanski

You’re investing out of state I assume? I noticed you’re in Brooklyn.

@Jonathan Polanski... Interesting story. Maybe the seller was interested in making some money from the interest.

Do you mind me asking where you found a quadplex for $250,000 in South Florida?

Was it in a war zone or  in need of a complete rehab?

Unreal. Well ball is in your court my man - if the terms are not favorable to you, don't do it. You offered this guy more than what he asked for. A bird in hand is worth two in the bush. If no other offers exist for this place he's fishing you for a better deal, and I'd tell him to shove it. Of course, its not my money and not my deal. If the numbers work for you all around then make the move. If his counter has wildly ruined the deal, then walk away.

I just can't believe this seller.

I would be courteous, but firm. Now I haven't been here since the beginning of this process and don't know much about the property, the area, the seller, etc. But in my mind, your offer is ABOVE their asking, which means its a more than fair offer. You are buttoned up in terms of financing, DP, conditions/terms, etc., and you've offered more than they've asked you for.

My response: "Thank you for your suggestion; I consider my original offer, terms, and conditions to be more than fair, and counter with the same offer accordingly."

You've made an above asking price offer. The fact that they would respond with anything other than "YES" or "BAFO because of multiple offers" is beyond me.

You gave the seller an inch of rope and now they're trying to strangle you with the whole darn thing -- I would say you are comfortable with the offer you gave at the terms enclosed.

The why is sort of irrelevant, they obviously have something in mind but if you put a property on the market and someone offers you more than asking, as my old English teacher would say, "shut up and take your apples."

@Jonathan Polanski In most cases, owner financing should be more expensive than a bank. This is because unlike conventional financing, you can't shop for owner financing on the same property. 

Nonetheless, it all depends on seller motivation. If you can structure the conversation and deal in a way that accomplishes the needs of the seller, you might get seller financing at better terms. 

Most commercial lenders require 15-20% down payments. If you're tired of chasing smaller deals you can either (A) partner, (B) invest through a syndication, (C) invest in public REITs and (D) raise capital to go into bigger deals. 

I wouldn't just rely on Loop Net and/or other public resources. Remember, if it's public then everyone can see it i.e. you have no edge. To get an edge you will need to develop relationships with brokers and lenders to ensure that you are first on their mind when they come across a deal that fits your criteria. 

Shop around and/or ask the seller.  Loopnet is a great resource, and you can also search for terms in the public remarks of a listing like owner financing or owner may carry.  Even though some owner financing is available it will generally be more expensive and shorter term than a bank would offer.