All Forum Posts by: Richert Dart

@Tyler Bains sent you a request and then I'll send you the sheet I put together for this property.  They are asking 2.4 million for it.

Hi all,

I am in discussions with a 17 office commercial property owner that is looking to sell. All 17 offices are rented and he's clearing 250k in profit on it per year.

Do I valuate this the same as a rental property? I've ran my numbers and I'm like 500k below what he's wanting for it so I'm not sure what I'm missing.

Any help or questions I can answer would be appreciated.

Thanks y'all.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Ok. So I just received a response from a seller via text asking me what I'd offer for three of their absentee owner properties and I've gone brain dead as it's my first response ever and potential first deals!

I'd like to wholesale these as they have 41%, 35% and 35% in equity right now in them.

Any suggestions on how to start that conversation and what to make as an offer?

He's already said "don't lowball me".

Also, 1 of the 3 properties is a duplex.

The "switcheroo" sounds shady IMO.  I've not done this but I'd prefer being upfront with the seller so that you don't end up feeling bad about what you are doing.  Sure it's business but there is difference between good business and bad business.  Depends on what reputation you want to develop and whether you care about that when you go to sleep at night.  If a seller is motivated and you have good connections with investors and/or flippers then what your value to them is in that.  You can turn the sale of their house around quickly without them having to worry about repairs or messing with a realtor and agent commissions.  

As for paying for the property, if you do it right you don't have to pay anything.  You get them to sign a contract that states you have X amount of time to buy the property for X amount of dollars.  During that time you are working to sell it to an investor for Y amount of dollars more than the X amount of dollars you agreed to buy it from the seller.  All from a piece of paper that has the terms that you and the seller already agreed upon.  This is wholesaling.  Purchasing the property yourself turns you into a flipper whether you do anything with it or not and then sell it to an investor yourself.  At that point you also have to worry about capital gains, perhaps a waiting period before you can resell it again due to your local laws.

Hope this helps.

I forgot to add, this is a commercial property.  Thanks all!

I found a deal, I'm considering going through a local bank but they only lend up to 80% of the purchase price which means I need to come up with the remaining 20%.  I do not have that money personally so what are some options to come up with the remaining money or what have others done?  Personal loan for the remaining 20%?  I don't know people with that kind of money that I can get it from.  

Have a deal that has 6 owner occupied tenants at $190 per month. It is zoned for up to 15. My question is do I base my valuation on # of occupied x 60 x 190 or 6 x 60 x 190?

Or do I do 15 x 60 x 190?

Either way I have a good deal, just want to make sure my offer is correct.

Thank you.

What document do you use for purchasing off market properties either to BRRR or sell? I've see in the forums mention of a 1 page document but where is that?