All Forum Posts by: Mackenzie Grate

@Levi Hannon Inheriting tenants doesn't always mean it's easier to start. I've had both situations, one that went VERY well, and then another one that did not. If the rents are below market value, you have to ask yourself why didn't the current owner raise them to market value or list the price appropriately in relation to what is coming in? If I'm an investor coming in and doing the difficult work of adding value (ie: raising the rent) I need to be compensated for it. Therefore the property's sale price has to be calculated on what the current rent is. If not, I'm taking on way too much risk. There is a reason why the rents are lower than normal. On the best of days it could just be that the previous landlord was avoiding a difficult conversation but on the worst of days it could be much more complicated. So I would tread with caution. 

Here's a tip. If it is over priced and the rents are below market, run the numbers with where the rent is currently at and share that alongside the offer. Explain why it has to be this price in order for the ROI to be feasible or explain this is why you need it delivered tenant free. By giving that option it shows you are a serious buyer and it also gives them a chance to choose one rather than just say no straight away. And if they do say no, move on and find another deal. There are always more fish (properties) in the sea! :)

Hope that helps a little bit :)

This is a red flag to me. 50% is very high for a deposit. Not saying this is the case, but often times when they ask this much it's because they need your money to finish another job, which means in order to finish your job they will have to do the same... this is a sign that they struggle with managing their cash on hand. So try to renegotiate if you can, if not, I'd find someone else. Plus a dollar today is worth more than a dollar tomorrow. Always best to keep more cash in your pocket now...

Hope this helps. Good luck! :)

Congrats on the offer! Seems like a great thing. Here's a couple of initial thoughts just after a quick read.

1) What is the exact number? How do you know the offer is really above market rate? Make sure you do your research. Sometimes people can say it is, but it's not really true...

2) Do you have to sell it tenant-free? Could it be worked into the deal where they inherit the tenant and finish their leases. I know the rules are different but here in NY, the buyer would have to inherit the tenants. 

3) I'd be hesitant to do a long term close. I'd rather just hold off until the fall to see where the prices are. If you are locked up in a sale and a better offer comes along, you are just that...tied up. Who knows, the market could be even stronger then. I would keep their contact information and just reopen the conversation then.

4) If it's an issue of the tenants having to leave, is there any way you can have them help relocate the tenants as part of the deal?

Bottom line, take your time and don't rush into any decisions. Do your research. I'm sure there is a win/win available for everyone. If not, hold on to it and wait until there is.

Congrats again! That's exciting to get a great offer when you aren't necessarily expecting it! :)

They definitely do. I have a client doing one right now. One thing to be aware of though, that we learned the hard way, is that if it's in an area where most multifamilies are attached, it will be more difficult to find rental comps. Our appraiser couldn't use stand alone houses as rental comps even though this particular multiunit property was three stand alone houses. I had to challenge the appraisal for my client which involved reaching out to a local property manager and getting actual redacted leases to prove that the comps he provided were too low. FHA sounds like a dream, because it is a low down payment, but know that there are a lot of additional hoops you will have to jump through. But yes, three separate houses qualify as long as the numbers and comps meet their requirement. :)

I'd recommend just going to a lot of community events and meeting people. Word of mouth always trumps everything. Join a book club, participate in a food drive, go to the local band playing at the pub on Friday night and just meet as many people as you can. Make sure to tell them what you do, but don't be pushy. It's all about genuine relationships in the community. Best way to get off market deals for sure.

My dream property is a beautiful wedding venue that is a historic building brought back to life. Ideally it would have amazing views, amazing restored architecture, lots of land and other buildings that can be turned into guest quarters. That is definitely a long term goal, but I can see it happening one day. :)

Update on the new regulations around the eviction process in Kingston, NY.

Hi guys, 

I need advice on where to find a great TC and/or VA? My business is growing so fast and up to now I've been doing it all. I'm at a small brokerage, so they don't have an in-house TC. I'd like to hire someone who can grow with me though. Any ideas on where to look? TIA! I always appreciate your support and expertise. :)

Mack :)

Listsource is good too, but I definitely prefer Propstream.

@Andrew Simms very good point! Totally agree! :)