All Forum Posts by: Sean Smith

Newer investor here...planning on making an offer to my immediate next door neighbor in a commercial property. It used to be 1 large build and lot, but was split up years ago. The construction materials (it's an old building) are the same and we even share a load bearing wall. 

I know roughly what the owner's numbers are already based off of mine. They should be free and clear at this point. 

Rent roll: $2800/mo
Taxes: 200-250/mo
Insurance: 125/mo

What other numbers do I need? 

I haven't been inside all of their units but they look decent from the outside. Can someone show me how to work up an initial offer to present them? Thank you. 

Treat this like any other property you'd consider purchasing. Instead of thinking about it as a $27K tax lien, think about that as the sales price. Knowing what you know about the property, would you buy it from a random seller for 27k? 

I don't know your marital situation or life right now, but if I could, I'd move into this house and fix it up as I lived in it. Start with the most pressing issues - roof and HVAC. You don't want to live in a house with a leaky roof and you probably can't live in a house without HVAC. In the northern states you'll freeze to death, in the southern states you'll be miserable. Really dive into what has to be done vs. what you'd like done. Do your cabinets need to be replaced or can do they just need new doors? Those aren't too expensive. Just because windows are single pane doesn't mean they need to be replaced. 

Ask for a reduction in the tax lien. Get together a large lump sum and submit an offer. Your state may reject that offer, but they may not. The IRS negotiates with people - you never know until you ask. 

Lastly, this is a business deal. Don't force it. 

Hello, new investor from Yuma, AZ. I'm still extremely new to the game. I've attempted a flip in my younger years (lost money on it, learned a ton though). I currently own a commercial property that I recently purchased from my landlord. The plan for that property is a to hold it long term for my retirement. My short term goal is to purchase lower priced homes in my neighborhood to rehab and rent. I'm looking to connect with local investors in both the commercial and residential sectors. Thanks for your time!