All Forum Posts by: Oisin Milne

@Tom S. yeah, i think future offers will involve my building more rapport with the sellers before making offers and diving in. This one was merely that the numbers worked really well for me.

@Bob Bowling 5 pluses in the area are range from 250k to 3.5 mil. Comparables are all 1.25 million (hence my jumping at the 450k) and rents start at 650 per month.

That is a good point though re: rent payments. *thinking cap goes on*

ok, so this is the second time i have put in an offer on a property. I have found a 5 bed, listed at 450k...

-----

"Hello, my name is Conaire Hodgson and my friend and I are real estate investors, looking to move into an owner-occupied investment property in london. We have had a look at the numbers on this property and the area and would like to put in two offers on this residence:

1) for 90% of the asking price (£405,000 total) on a 10 year master lease-option at £2,000 per month (£240,000 total over those 10 years) which will count as a non-refundable 40% deposit. In the event that we do not buy at the end of the term, the buyer gets to keep the money and the house, allowing them to attain a steady stream of income over the next decade and then either the rest of the money or the ability to re-list the property after a decade of inflation in the area (estimated to be between 30 and 40 percent).

2) we will offer £360,000 (80% of the asking price) on seller financing (wherein the seller themselves extend us a line of credit for that amount) for a 30 year, 10% interest, fixed term. £1100 per month, totalling £396,000 when all is said and done. Again, you can see the benefit of the passive income stream generated by this.

If the sellers are interested in either offer, then don't hesitate to call."

-----

So... what do y'all think?

 I'm somewhere in the middle: I would like 400k in cashflow 😁

All the above is good advice. Explain (be the authority) that without seeing the property, buyers will offer less (or refuse all together) offer to go in once, offering a bit of moolah, take photos and videos, document what you can, etc. Take the seller for coffee after and be personable: if they like you they will be more likely to help out in the future.

If you still can't get in with the offer of a little grease money, then cut your losses. You could be spending time finding better deals with people who aren't being so obstinate.

@Brent Coombs yeah, gonna be the way forward for me. I remember seeing that years ago.

@Pat L. Ok. So my challenge is to do the same but on a shoestring... Challenge accepted.

ok, so I live in drizzly UK. You know, that place with ALL the weather.

I bring today some disparaging news. I was working out the numbers on a few properties in an area I may be moving to and found this:

Average price for a 2 bed: £165,000

Average rent for a 2 bed: £950/m

Can't help but notice that this is quite drastically below the 2% rule... it's less than even the 1%... it's close to 0.5, but how the hell would that be any good? Let's analyse 4 beds...

Average price: £255,000

Average rent: £1600

0.631%

So... yeah, what's a burgeoning new investor to do? :-S

I can't wait to hear what happens next! Good going!

Ooh. Very nice. You'll like the lake district over here, very picturesque. As for Ireland, you'll have to smuggle me over there: i keep saying i'll go back and see my family 'soon'...

ok, so fleshing out my plan for the future and thinking about getting the initial downpayment for my target, I figured I would come and ask about this:

Would you invest in me at a rate of £10k for 50% of profits of the deal i put together, until the 10k is paid off, then 25% ongoing profits from the same property (buy and hold), and 10% of the *next* property?

If not, what *would* you go for?