All Forum Posts by: Michael Lowe

I agree with Jacob on this. I think it's very important to find a good agent.

1. they have access to the MLS, which is the a great place to find the good deals.

2. they'll be able to handle your contract for you and do the negotiations and you can focus on other things.

3. they, if they're a good agent, should be able to like Jacob mentioned vet your properties you send them and tell you which ones will be worth your time.

Yes, it may cost you 6%-7%. You just have to calculate that into your projections as a cost of doing business.
I suppose, ideally, you could get your license and go through your own broker for the sales contract and legal support in purchasing your properties. But, if you're like the majority of us, you have a different job and probably a family too that demands your time.

@Monica Breckenridge

Thanks for sharing your successes Monica!

It gives me hope.

Also, thanks for seeing the purpose of this thread, where some find a point to say something snarky, you chose to share with me (someone who’s just starting out) that it CAN be done despite the negativity.

It also helps me to see just how many people went through similar conversations with their loved one!

Thanks again.

@Sam Josh

Not the purpose this post.

If you would read what I shared initially, I stated that I’m just starting out.

So clearly, there’s no success there... if I haven’t done anything yet..

Thanks for the input.

Have a great day.

Lot's of great info here, Sean!

Thanks for sharing your story. It gives us starting out a little bit of insight and can help us learn from your mistakes. I'm sure I'll be making plenty of my own. But, If I can learn from yours I will!

Thanks again for your transparency. Glad to hear the multi is going well!
Hoping for more success for you in the last 2 quarters of 2020!

@Caleb Heimsoth

I mean, there’s something to be said about the straight forward, here’s my offer, take it or leave it.

I DO have a tendency to over-think, this is probably one of those times...

It’s hard to know what someone else is thinking. In any other case, I don’t think it would matter to me. I’d just make my offer and move on.

In this case, however, it’s important to me to leave them feeling good about our conversation. Just as important as it is to me get a good deal.

Maybe a combination of the pass/fail system previously mentioned, combined with the hard offer is a good approach.

Thanks for the input, Caleb!

@Ryan Evans

That’s a great way look at it Ryan.

I may go that route. That takes a little bit of the emotion out of it, I think

 Great advice Brandon, 

I'm pretty confident with an overall ROI of between $30k and $40k based on some of the numbers listed. Also, based on comps in that area, I've not seen houses sell for much less than my suggested number of $160k. That said, I think it would be wise of me to expect the worse but plan for the best. With that in mind, there is still a profit to be made here, if I take the house for between $70k and $80k, maybe the answer is to hold and rent rather than to flip. That way I can recoup some of the Reno costs, even if I do decide to sell in the future, before I sell. If I decide to hold and rent, I can take my time with some of the renovations, as the majority are cosmetic and even cut some costs by not going as high end as I would if I was trying to sell for top dollar....

Thanks again for the input

well, thanks for the most sarcastic answer possible. 
I've figured my numbers, and you're right $75k was the number I want to pay. I'll listen to more people with a soul to figure out the best way to structure this deal so I don't take advantage of a couple of old people in my church. 

Thanks for your input.

I live in a pretty sought-after town just outside of Topeka, Ks (Silver Lake). 

Here in Silver Lake, houses rarely hit the market and regularly sell for more than asking price.
I was made aware of a house that is not on the market.
The seller goes to church with me. My father-in-law brought the deal to me and walked through the house with us originally.
The county appraises it at about $151k (in this market, I'm confident after rehab, it can sell for around $160k or more). I have a little bit of insider knowledge on the house and (I think) expected value.

The story goes like this : My father-in-law an elder at our church was sitting down at a church dinner with this fellow and the pastor and other elders. He stated that a RE agent was allowed to walk through (about a yr ago) and offered $60k for the house. The owner (politely, but firmly) asked the agent to leave. Through this discussion, around the table were quick offers thrown "don't sell it to him for $60, I'll give you $65", one said. "I'll give you $75" and it went up like that to about $85k.

My wife and I have walked through the house a couple of times and have figure that the house needs anywhere between $30k and $40k to rehab. (still aren't sure if we'll flip or hold).

I am trying to structure an offer that, both, makes our investment worth the return AND isn't offensive to this retired gentleman and his wife. 
In most cases, I would simply make an offer, a hard anchor, and try to negotiate up to a mutually agreeable number. In this case, however, I don't think it to be the best decision. You see, this (retired) couple is very poor, owns the house outright and can barely afford the taxes on the property, as it sits. It is not my intention to get it for "as low as possible" and risk taking advantage of somebody in his position, knowingly. I would like him to benefit from this deal as well. But, it is also not my intention to lose money or work my butt off for a $5k profit...…
I would like to purchase the house for anywhere between $75k and $85k, but am looking for some pointers on how to come to that number together. I don't want to pay more than expected, but don't want to offer an offensively low number..

Thoughts?

@Irene Navasca

Great advice Irene, I’m definitely channeling all of that negative energy into proving them wrong!

Thanks!!