All Forum Posts by: Peter Nikic

@Peter Nikic I was in a very similar situation. I reached out to an off market seller for a 9 unit property in late 2020 and he wanted $900,000. I did not want to pay this inflated price and was naive. 2 years later I purchased the same property for $1.2 Million and nothing changed in those 2 years besides everything appreciating and cap rates compressing. This is a value add property and I pushed the NOI and value of the property close to $2 Million. In the end this deal was def worth it for me, just make sure your deal hits all of your buying criteria. Property values have been going up 10-15% in most areas YOY so this is not unheard of. Just make sure you have multiple exits, if the market crashes you will not be able to refinance. As long as it cash flows you can just hold it for the long run. Best of luck!

@Peter Nikic no experience on this, but at the current time, nationally, roughly a quarter of houses are having price drops, the pool of buyers is shrinking (due to the interest rates you mentioned) and the time on market is increasing.

No, it’s not a crash, and we’re going from a crazy overvalued market to an overvalued market…

With those caveats, you mentioned it’s neglected. That means you get deferred maintenance too. That’s all fine and dandy until you spend tens of thousands on a roof or a foundation etc…if this isn’t a competitive deal in your market-I would offer what makes sense, acknowledging that you and the seller may not come to terms on this one.

Good luck

Did you think the price would stay the same? Home values across the nation have increased 18% in the past 12 months, much higher in some areas and a little lower in others. I think he's doing you a favor by only asking for an additional 8%.

@Peter Nikic

If I were in your position, I would definitely expect to pay more unless you paid them for an option on it.  Also, if prices had dropped and it was worse less than the original agreement, would you insist on going back to them and paying the higher price or would you want the new, lower prices on either that property or one similar to it?  Honestly, I think the seller would be crazy to accept this year's dollars at last year's prices...

I think you should challenge him to an old fashioned dual with flint-lock pistols, to restore you honor!!! 

I had a property under contract a little over a year ago I backed out due to having my hand full etc. The sellers and myself got together on the property again. They ask for the more this time. The deal with the little more this time was better than to deal for less last time.( Somehow the knew the market went up.) The market has gone up. We Closed this time. 🧐

@Peter Nikic

As a project manager, this is very familiar lingo to me. Remember the name of the game is investing. Think about what your goals are with this particular investment, crunch your numbers with the 8% variation. If it still makes sense, go for it. Sometimes you have to give a little to get a little but at the end of the day it's about accomplishing your goals.