All Forum Posts by: Mustafa Abdulali

I second the cash flow comment. Also, be able to write dozens of offers very quickly instead of taking days to do one. One realtor did a nice job of sending me a dozen listings and he took one and broke down all the numbers for me so I could see the cash flow, ROI and cap ex in order to give me a general idea of the neighborhood potential. Finally, know the rents in the area your selling.

@JD Martin thanks for the quick reply! I wish we would have put in stronger verbiage.

I’m interested in purchasing a home and had my agent put into the contract that the following items must be either repaired or a credit given for repairs (we noticed these items during the first showing):

"Contingent on:

receipt of initial mold report from H2O no later than 3 days after effective date

items notably understood for repair or credit

sliders do not work, do not lock must operate properly

hot water heater has leak

screen lanai has sections of screen not secured in place"

We are using a standard Florida Realtors and Florida Bar approved contract.  It is not a AS-IS contract.

My interpretation is that the items listed MUST be either repaired or credit given.

My agent is insisting that the additional terms don’t mean the seller has to fix or credit anything, instead it is an understanding that after the inspection we will be issuing an inspection notice asking for a credit/repair, which the sellers can then accept or decline. I’ve inserted her comments below:

“There is nothing that says they are absolutely giving you anything.
It was inserted as part of an understanding of what we will be coming back with, opening accepting the price...

You need to complete the inspection to fully see what else is a concern before you ask for credits or repairs. It’s called an inspection notice… you will want to include the cost to cure/repair those items so we can present a price… ok”

My point is that if they are not going to fix the items, which she believes they won't, why would I go through the cost of having an inspection done?  Not fixing the items, at this particular price point, would be a deal breaker for me.

My limited understanding of tort law indicates that the contract is binding and that the Inspection notice is an addendum that can be bargained over.  If I asked for something else, outside of the items in the original contract, then the sellers could decline to fix/credit those but the original terms of the contract are enforceable.

I would appreciate any insight the forum can provide, especially if you are Florida real estate lawyer.  I do need to initial the counter offer tomorrow.

Thanks!

Check with Patrick Nuciforo I think he started a PM company specifically for RE investors. Also John Thedford may be able to help you with getting a tenant.

For those of you that have bought out of state, did you do all cash deals or did you finance? I'm seriously considering a long distance rental either within Florida or the Dallas area.

@Gilbert Dominguez I liked your idea about describing the Florida room to a contractor. The listing does show some of the room so maybe he can tell me from the pics.

Thanks all.  I was pretty serious about making an offer but I needed to know if what I wanted to do was even feasible, which is why I wanted a second showing (the sellers are not present at any of the showings) with a general contractor.  I'm pretty accurate on re-modeling kitchens, bathrooms, etc but this was more advanced construction that I'm not as familiar with. @Gilbert Dominguez thank you for your insight.  I spend a lot of time researching so that I only preview homes I'm serious about and am very careful when I'm inside.  I respectfully disagree with your last line.  @David Robertson is right, would it be better for the seller to get a contract and then me walk out or do a second showing with a contractor?  Which is more disrespectful?

Hi @Patrick Nuciforo

Welcome!  I've found BiggerPockets to be a great site.  It's filled with factual information by people who are actually investing.  Congrats on the 3 properties.  I can relate to your frustration about SWFL.  I'm currently working on my first "house hack" in Naples (I'm 0 for 3 so far) am finding it difficult to close on a deal where the numbers work out.  Good luck on the 4th property!

I really like my realtor but she's got all these "rules" that I don't understand.  For example, we went to one house and the layout was a bit off but I still liked the house (it was occupied by the seller).  I asked her to show it to me a second time but with a general contractor present so I could get a rough idea on how much it would cost to make changes (I'm not talking about updating the kitchen or new flooring).  I wanted to know if we could convert a Sunroom into part of the house and what it would cost.  She wouldn't do it. She said it was inappropriate to have a contractor without it being under contract first.  Am I missing something?  She keeps telling me "that's just the way its done."  Is this a general rule that I'm just ignorant of?  It seems to me a seller wouldn't care who I bring if it helps them sell their home.

I almost started crying when I read this thread...@John Thedford

 is right about the "stupid money" because I may be one of those all too soon!  I've been watching Naples properties for a year now and I'm amazed at the prices that they are going for.  I can't find anything close to the 1% rule of thumb so I decided to try and "buy, live in it, renovate and sell in 2 years" to generate some cash.  The asking prices seem to be at least 10-15% above comps from just 3 months ago and when I try and offer even 10% less than asking my agent she just looks at me and says "its a sellers market and they won't even respond to low ball offers".  I'm ready to throw in the towel...