All Forum Posts by: Andy More

I graduated with a dual degree in finance/real estate. It definately helped me. I'm in Columbia graduated from University of Missouir-Columbia, not far from you.

Also, for what its worth my offers are cash offers.

I sent out my second mailer on monday to multifamily property owners with equity. I sent out 80 letter and have already received 7 calls. I've made 7 offer and so far have 5 rejections. Havent heard back from the other two yet.

Most of the people contacting me own properties that overall are in good condition and dont need any significant repairs. I've been pricing my offers with a minimum 20k profit. Is this an unrealistic profit to expect on a property that needs no renovation?

I didnt expect any accepted offers only after 5 offers but was just wondering what others thoughts were on this.

I am a mortgage broker as well and can tell you there are a million random things that could keep a loan from closing. I'm suprised though they didn't give you more details than "it was the big banks fault". Did they not send you a denial letter which is supposed to say why loan was denied?

If you were saving $400 at 4.25% I would think you would still be saving something at 4.8%??? Did they give you the option of closing at 4.8%

RESPA(Real Estate Settlement Procedures ACT) got revamped last year and has caused many delays on many loans because of all the red tape that has to be complied with. Its a nightmare!

Michael R,

I just sent out my second mail comapaign today so I like to hear sucess stories like yours! What do you think the market value of these properties you purchased are? Do you plan to flip or hold? Who was your mail campaign targeted too? Thanks

Mike M., I'm not afraid of long distance landlording I just dont think its a good idea for me and many other people that are willing to get involved. A newbie owning a long distance rental sounds like a disaster. The reason you can successfully LL long distance is probably because at one point you did manage your property and now know what to look for in a manager. With that being said, managing my own property saves me money! I understand the diversification argument however in the OP case, they already own a rental in Vegas so they would be diversifying by buying a rental around their home. Also, I don't drive by rentals regularly to give myself an ego boost, I drive by regulary to make sure there are no shenanigans going on at my property or neighborhood. I think that any good owner or property manager should do this regularly. A quote I like is, "The best pesticide is a farmers footsteps", I think this can be applied to landlording.

1. No. $1,100 in rent on a 150k purchase is not a good deal in terms of cash flow! Plus, I dont like the idea of long distance landlording.

2. I dont know and anyone who says they do is guessing.

5. How far away from retirement are you? Mike's idea is good if you know what your doing.

Good Luck

Ok, you guys convinced me to change the ad. I've changed it to what Jeffrey recomended. Worse case scenario if i'm wasting to much time with unmotivated sellers I can change it.

I'll let you know what happens.

Jeff,

You read it as i'm tyring to rip people off. I read it as me saying that I can offer you a guaranteed quick sale in return for a reduction in price. I guess the question is how do most potential sellers read it? I've been told before that I overestmate peoples intelligence, maybe i'm doing that now.

"Why would someone take less than market" Because getting market/retail value takes time to get and they are motived and need to sell yesterday.

"Everything you buy is market because the person willing to pay the most is the market." If I said market value I meant retail value. Everything I buy is not at retail value.

"People want the most they can get." Off course, who can blame them. If if the NEED to sell within 10 days then my offer might be the best because other higher offers can't close that quickly.

Bottom line is that i'm just try to avoid wasting peoples time who want retail price. If they need a quick close I can give them that but they need to give me a discount in return.

Jeffrey, I appreciate your opinion and would be interested in hearing why you dont think I should just lay it out there and say in my ad i wont pay retail price and allow the unmotivated sellers to screen themselves