Originally posted by @Albert G.:
Originally posted by @Mike Mead:
Originally posted by @Theodore Freeman:
Grats!!
If you don't mind...Did the provided justification to lower include something in the numbers or was it something unconsidered in the property itself?
Hi Theodore, Good Question. I told them from the start I was an investor and that the numbers had to fit my strict criteria (15-20% below market value, 20% down, and cash flow of 200/per door). I then discovered that the property required Wind and Hail insurance because it was so close to the Coastline. That ate directly into my cash flow which required me to lower how much I could offer. The Hot Water tanks (While still functioning) were at least 8 years old and I anticipated a replacement on those right away. So I actually worked the numbers backwards until I arrived at $200/door. I felt that if I bought it right, the market would tell me what I could offer. I hope this helps.
Hi,
Did you actually tell them that you are looking to purchase a property 15-20% below market value?
Sellers are always striving to sell their property at market value. Would telling them you only buy below market value, work against you?
Actually, I told them I only purchased properties at a discount from the market value. I didn't give them the exact disoucnt I like to purchase properties. However I had my max number I would buy for and I assume they had their minimum price they would sell for. I guess it depends on how you look at it. I felt like by telling them I was an investor set expectations that I would be looking for a discount. In this case, I don't feel like it worked against me but more so helped. They knew that it was only about the numbers for me.
