All Forum Posts by: Michael H.

I met with the owner again yesterday. I had proposed some sample offers to her where each one would provide her a million dollars at least in 5 years. $800,000 purchase price, $80,000 down, 6% interest. $850,000 purchase price, $65,000 down, 5% interest. $900,000 purchase price, $50,000 down, 4.5% interest rate. She's not 100% yet but she's mentioned multiple times and things to me why I should have the 5 duplexes. She likes me a lot. Crossing fingers and toes. She has a realtor that is ready to put on the market at $1,200,000.

Welcome @Jared K.. Congrats on the new gig. In my experience to date I have found a few people that are really interested in helping with phone calls, texts, and forum answers. I have several new colleagues to bounce things off. Keep asking questions and answering some too. You'll find the help you need and colleagues to support your career.

You might look into what @Thomas Rutkowski is doing for financing.

Very good stuff @Dan Bryskin. Could you expand on :

6. If you help her set this transaction up, spare her an expanse and hassle of dealing with broker and 7 different transactions - here is your value, ask for a discount. If you need to negotiate, look at individual values, tell her I think 3 a priced fair and two are overpriced of something ...

I don't understand how I add value and the basis of a discount very well.

8. If you end up buying property, pay your friendly real estate broker a $500- $1000 or so per property and have transaction go under his license. He has insurance, there is a value to that.

I don't mind paying it at all but what's the value of their insurance? What stage of the process would this be in the varied purchase options?

Thanks

Thanks Jeff Filali I was planning on talking to her about the kids but never thought of the trust. What a great idea. As you talk about it that maybe one of the 1st things I bring up now. It's a delicate balance of getting the best deal I can and not being perceived as taking advantage of an elderly person. I want a win win for sure. I certainly don't want to take advantage of her either.

Rodney Sums all very good questions. I'll know more after I meet with her on Monday. I'm very sure the sewer lines are not part of the insurance. I believe she had 2 lines replaced in the last 5 years. It does sound like she's done some remodeling and updates but I don't know yet. My method of inspections are to have roofers, plumbers, electricians, and hvac techs evaluate the homes vs a general home inspection. I would pay each of them a fee to review and report. I would imagine for these it would be roughly $1000. I use a company called Hydro Physics to inspect the sewer lines. For $250 they inspect and provide video on cd and a report for each line. With 8 that could get costly and I would hope to get a discount. I'll provide more info once I get it.

Chris Eaker I will definitely check it out. Thanks

Marty True those were last year's assessed taxes. From what I've seen the tax assessment is always lower than the real value. How would I calculate the difference? Right now each duplex is valued somewhere around $180-$190,000 according to her agent and sold comps I've seen. They're assessed as low as $138k and as high as $154k.

Also, what does it look like if I buy them individually or as a packaged deal?

Great information Scott Sirovy. Certainly worth more investigating as you said.

Chris Eaker what do you mean by master lease option? The figures I showed were based on Rentometer. I've not heard of Cozy. I'll check it out. What do you like about them?