All Forum Posts by: Joe Salimao

Hi guy,

I am finding a lot of my offers are being refused. I am dealing mainly with sellers directly.

My offers are low...as they should be but not unreasonable, at least I don't think so. My question is what is a good way to justify your offer to the seller? I would like to include in my presentation to the seller the costs of selling your home through a realtor or trying to sell FSBO and relate this to how selling to me would be advantageous even though my offer is low.

Do you guys use these costs when presenting an offer to a seller? What are some other advantages in selling to me rather than going another route?

I really would appreciate any input you experienced investors could provide...thanks!

Joe S.

Thank you all for your replies.

Have any of you been through a similiar situation? If you have would you have a letter you could share with me that I can send the tenant?

I do not have a phone number for her so the only way to contact her is through the mail. I am planning on putting a letter in the mail tomorrow. I will keep you guys posted.

Thanks again!

Joe Salimao

Hi everyone,

I am currently working on a wholesale deal that has two major barriers. The first barrier is that it is listed with an agent. This means all offers must go through the seller’s agent. This is not the biggest problem because I have direct contact with the seller; he actually called me about buying his house.

The bigger problem is that there is a tenant currently residing in the home. She will not respond to requests from the seller’s agent to show the house. She is also late on her payments for the second time. The first time they went to court and she paid a lump sum to stay.

The Realtor wants to file for eviction again and said that he would show it to me after she is out. The problem is that this could take months. Also, this would mean that the seller’s agent would have control of the deal, meaning it will be much easier to sell the property once the tenant is out. I believe this is their major stumbling block since no homeowner or investor wants to buy a house with a deadbeat tenant in place and this is enabling me to purchase the property at a steep discount. Not to mention they can’t even show the property even if someone did want to buy it. If I wait the months after the eviction I am pretty sure they will move this property for a much higher price than the seller agreed to sell it to me for and I will have wasted a great deal of time for nothing.

As investors we make money by solving seller’s problems with creative solutions. The problem here is the tenant and if they solve it themselves then there is no motivation to sell. I want to be the solution to this problem so here is my question. Can I contact the tenant directly and ask her if I can see the property? I am planning on offering her $500 to vacate the property and given the neighborhood and the tenant’s situation I am pretty sure she will take this. If the seller gives consent, which he has, can I do this?

Sorry for the long post...look forward to hearing from you.

Joe Salimao

Hi guys,

I have a deal I could use some advice on. Let me know what you think.

This particular seller has a home free and clear and is receiving $1200/month in rent. He is willing to hold paper for a certain length of time so I am trying to calculate what I should offer him as a monthly payment. I want to offer him $600/month for 10 years and then offer him a balloon payment of 55K or so. His
home is listed for 119K and has been on the market for 3 months at that price and even longer listed at a higher price. I estimate the home is worth about 100K.

ARV = $100,000
Total Purchase = $72,000 (monthly payments) + $55,000 (final payment) = $127,000

So I feel that this would truly be a win-win situation because he would receive approximately 27K more than his home is worth today…call it interest or additional cash for holding paper or whatever you like…and I would receive a property that has good cash flow and would only need to mortgage 55K in 10 years.

I want to present the seller with the payment in terms of what he is receiving now compared to what he will be receiving in addition to the benefits of not owning the property.

Here is how I have it broken down so far:

$1200 – Income
($220) – Taxes
($80) – Insurance (Just my estimate…don't know exact number)
($204) – Maintenance, vacancies, etc (17%)
Net cash flow - $696

So if I am offering him $600/month he will be receiving close to the same amount of cash flow he is now but will have no responsibility to the tenants and
doesn't have to worry about repairs etc, and he will be receiving more than market value for his home.

I am missing something or does this sound like a good deal that I should take to the seller?

I look forward to hearing input from all you guys!

Oh and keep in mind that this is in NJ, the state with the highest property taxes in the nation so this has an effect on cash flow.

Joe Salimao

I have been using real prospect for over a year now. It is great for keeping track of prospects, properties and associated activities. It also allows you to manage your buyers list, which is a plus.

The one thing it isn't good at is editing documents. If you build your letters in real prospect you will find that it is very limiting. For example, you can't insert images (like your logo) into a document.

Another feature that is annoying is related to the import function. When importing prospects, if their zip code begins with a zero, then it will not import the zero. For example, if the zip was 08080, it would import as 8080. This may not be a problem where you live but it is for me. Their solution is to open the .csv file and put quotes around every zip code. This is not a solution rather a work around.

Overall, the software is good but has bugs. One way I have gotten around this is to just use it to manage my prospects and activities and when a mailing is due I just right click and export prospects. I then use letters that I created in word through its mail merge function. Works well.

Hope this helps!

To get a response from google voice you need to wait a while. You are not alone though. There are a lot of people waiting. You can actually purchase an invite on ebay.

The good thing is it is free and you have the opportunity to get a local vanity number. After days of searching I managed to get 4PAY-NOW in my local area code. You may have to search but there are some available...just be creative. I am now going to cancel my 800 number.

I bought the course and thought it was useless. It was like listening to a broken record. He repeated himself over and over again about basic information.

Jon and Brian,
Thanks for the answers. I guess the answer is to put up money with her and be partners. Or maybe see if she would liquidate some of her IRA and we could use that.
She is in the process of trying to determine what to do with money in a 401k from her previous job. She wants to invest with me so I told her self-directed would be the way to go. Maybe if she won't receive a penalty she can just take some cash out of it. She is close to the retirement age but I am not sure if she meets the age limit or not.
Joe Salimao

Hi guys,
I was interested in using my mother-in-law's IRA to finance a real estate deal but recently learned that this is not allowed. Are there any ways around this?
Joe

Thanks Nick,
I actually use postcards.com (around the same price) to print the image on the front. Then I am trying to print my letter on them myself so I can use variable data. This is where I have a problem.
Joe Salimao