All Forum Posts by: Nathan W.

My succinct response would be: You're right.  I like money--it buys so many nice things.

Hopefully this is a SELLER's realtor and not YOUR realtor.  Otherwise my succinct response would be slightly less succinct, yet  directly straight to the point that you will no longer be considering this agent as a valuable commodity on your team....

I am terrible at negotiations, so that is not an area I can offer direct advice in regards to.  But I did listen to @michael quarrle's BP Podcast (#77) last night and consider him the master of negotiations.  Would you be able to leverage some of what Michael talks about into your negotiation and turn that "NO" into a yes? what is their motivation for selling? Why did they choose to self-list at $700k instead of hiring a broker? There may be some value there that you might hopefully find beneficial if you ask the right questions.

If I were closer to Michigan this sounds like a great JV opportunity and I would happily jump into it with you for capital. Maybe one of your buddies watching his money drift away at 1% interest in a savings account feels teh same way?

Are the sellers asking $700k? That could be inferred, but was not evident, from your post.

Are they willing to carry back financing? If they have owned it for a while, you could propose that they carry the down payment financing at the price point they are asking for, at a 4% or so interest rate.  Of course, with another multi-family financed at 100% you have probably already thought of this.  So what is prohibiting that from this deal?

 Anytime.  I know that you are a proverbial pinata just overflowing with helpfulness and goodwill, just waiting for someone to come by with a stick...

 I am not for one second (foolishly) discounting your experience and anecdotes.  And your experience that "but its not the majority" may very well be absolutely accurate.  But that does not represent my current reality that none of the turnkey providers I am looking into for my next purchase are the property managers.  Looking at 3 different markets right now and 4 different TK providers and all of them have the property set up with a PM that appears to be a separate entity from their TK company (with nothing leading me to disbelieve them). 

The OP that I initially responded to would have been absolutely correct to state that "one of the risks is if the TK company also is the PM company and they both fold". But that is not representative of necessity and can be easily mitigated by going with a TK company that is NOT the PM company, as I have done.  And I have touched base with other PM's in my target market area just in case, you know, as part of due diligence....

I stand by my original post with the clarifications noted above. 

What an insightful, thoughtful, and helpful post.  Thank you so much for weighing in.

 You appear to have completely missed the point that the turnkey operator is NOT the property manager, which was the original concern presented.  

 This answer was amazingly succinct and straight forward.  To the point it makes me wonder why it even needed to be said (but of course realizing why it does).

 haha fair enough.  I probably should have put a smiley face after my post as well but I was probably in a crappy mood that day haha :)

Which is precisely why I said SFH