All Forum Posts by: Lore Postman

Hi Joshua, Do you mind sharing a little more about the property you want to write your offer on? If it's straight off the MLS and you're not trying to negotiate a deep discount, or seller financing, or if this isn't a property you REALLY want to have, I might suggest asking a realtor to be your buyer agent and use the standard NC realtor form. (I'm assuming the seller's agent said to write the offer). That said, I ALMOST always write personal letters with my offers. I ALWAYS write letters when I'm asking for terms like a deep discount plus seller financing. That said, I've spent a career in journalism and was a business writer for the Charlotte Observer, so writing a convincing pitch comes easily to me. Unfortunately, the letters are always custom and written after I've analyzed the deal up-down-and-sideways. My advice is focus on the seller's perspective and what you can say that may appeal to them. I'm happy to review a draft if you'd like. Best of luck! Lore

@Charles Ledet It's definitely possible! Be sure to look at non-traditional financing opportunities, which you'll find being talked about throughout the BP community. The first duplex I purchased was owner financed for all but about $7,500. The sellers (my bankers) owned dozens of properties and as part of their investment model, they would finance them to other investors at 5% or 6% with a balloon at 7 years. That was their way to make money without the hassle of broken water heaters or leaky roofs. 

In fact, they even had a clause in our deed of trust agreement that I would need to pay them a certain amount of I paid off my loan before 3 years (like a pre-payment penalty). To be sure, those seller-financing partners aren't everywhere, but even today, some 10 years later, I'm still on the watch for owner-financed deals and even try to talk sellers into going that route if their money is just going to sit in a bank. 

I agree with Taylor. I see many very distressed properties get sold off market simply because they could be dangerous to show to buyers (i.e weak floor boards) using a traditional realtor approach. 

I've had luck finding distressed properties by focusing on specific neighborhoods where I'd like to buy. I visit those neighborhoods frequently, including walking them or hitting garage sales, which give you the chance to chat casually with homeowners about what's happening in their neighborhood. 

I then watch for signs of transition at homes anywhere along the streets I'm interested in... such as tenants moving out, larger-than-normal amounts of trash appearing at the curb, old carpeting or paint cans on the porch, etc. Then I go out of my way to drive those streets during the normal course of running errands, etc. I'll stop to chat with neighbors and can get contact info or information on what might be prompting the new activity. 

Yes, I'm a pretty slow and patient investor. My husband and I are in for the long haul and so far have only bought to hold for long-term investments. Until recently, we didn't have the money or sweat-equity time to buy faster. But also, proceeding slowly and talking with neighbors and owners for months (yes months!) before we're able to get a house under contract, has helped us buy properties for much less than we otherwise could and almost always the seller has carried some of the financing. 

Best of luck!

This won't help you on your current project, but it might be helpful on a future one. I like to negotiate a contract (much like what's already been discussed on this thread), with a price and end date that the contractor and I both feel good about. My own "feel good" number written into the contract is usually 5-10% less than the amount I'm actually willing to pay. In this case, let's say I'm ok paying another $5k more for a project. 

Before we sign the contract, I like to add one last clause: If you (contractor) finish the job on time and on budget, I'll give you a $5k bonus. However, if the job isn't finished on time, that bonus will fall by $500/business day. After 10 business days, you agree to pay me $500/business day until the work is complete. Any cost overruns not agreed to in writing also reduce the amount of the bonus paid.

This clause seems to help keep projects on track. For larger projects, I've broken the scope into milestones and awarded bonuses at those points. There have been times when projects ran over or long for reasons the contractor couldn't control. In many of those cases, I've surprised them with a good chunk of the bonus after everything is done. In this business, goodwill and long relationships are as important as on-time and on-budget work. 

Hope that helps!

Hi Jason, 

Andy Crooks offers great tactics on what to do for your area/state. I'll offer a few bits from my own experience. There's no hard-and-fast rule for making an offer or getting a deal. In fact, of the 15 or so properties I've purchased in the last 10 years or so, in only 2 or 3 did I use what would be considered a traditional offer. 

Right now I have a house in full renovation (in one of the communities north of Charlotte, NC) which I put under contract using a 1-page letter. I have 4 more parcels on track to close in a few weeks (also north of Charlotte) that went under contract with a 2-page letter. 

I've had the best luck with offers by trying to learn what's important to the seller, and then shaping a deal that will work for both of us. 

Check out J. Scott and Carol Scott's Bigger Pockets podcast on negotiating. I've had luck using a lot of the techniques they talk about. It's nice hearing their experiences in podcast format because you can replay sections multiple times as inspiration or to spark new ideas for yourself. 

One of the parcels in the deal we're about to close is a 6-plex multifamily that's located near where the owners own and operate a small restaurant. They kept a small apartment in the complex for themselves (to avoid battling traffic between their "regular" home and the restaurant). The offer included letting them keep the apartment (and not pay rent) for about 4 years. We will get enough from other other units to cover our costs, and making this offer helped the sellers accept a purchase price that was many multiples lower than what they were originally asking. 

I also have no hard-and-fast rules for how to find deals. The 6-plex was MLS, and for that reason I enlisted the help of a realtor I've known for years. If the seller has an agent, I always have one too. But so far I haven't brought an agent to a FSBO listing, mostly because I like to talk directly with sellers as much as possible so I can try to determine what's most important to them.

Best of luck! Keep asking great questions. The answers you receive will not only point you in a good direction, they'll give you confidence to start inking deals!

Lore