All Forum Posts by: William Kelly

@Ian Cooperman This is a very interesting situation. I am not entirely positive on the best route to take with this scenario. The best approach I could recommend is to create a new thread with a detailed description of what is going on so that others will be able to see it. I am curious to see the best alternative to this as well!

@Ian Cooperman You're welcome! Another key point to put into perspective is although you do want to analyze the numbers on the deal and get the ball park estimates, you don't need to be EXACT. It is inevitably not your sole responsibility to be exact on the repair costs, it is the buyers. It is the buyers responsibility to do their own due diligence on the property in order to know that they are being covered. With that being said, you do want to be in the general ball park which it sounds like you already are by having a licensed contractor walk through the house and give his repair estimates. And remember you can always go back to the seller to renegotiate the repairs the buyer found to come to a mutual agreement. =)

@Ian Cooperman Looking at these numbers it seems as though this could definitely work. How negotiable is the seller? When negotiating I would recommend anchoring the seller at a reasonably conservative ARV and negotiate it down from there. This will help you be able to get closer to the number that you want. I would also walk the seller through each option they have so that you aren't pressuring them into your "low" offer. I would ask them questions such as "why don't you list it with a realtor?" "Why not fix this up yourself?" "Why not put a little work into it and rent it out?" and lastly "why not keep the property?". This will help the seller feel as though he is almost trying to sell YOU the property since he doesn't want to use any of those options and hopefully help you guys come to a better agreement on price.

And in the cases that they do pick the other options well then you truly were able to do what was best for the seller and help them out in their situation. Hope this helps!

@DJ Cespedes Welcome to the BiggerPockets forums! You are absolutely correct in the fact that this community is a great resource for people looking to get into real estate investing! It sounds as though you have high ambitions and are definitely on the right foot as well. When you get some time, I would check out these links to help you better navigate and get accustomed to the site. 

Getting the Most out of BiggerPockets

How to Effectively Use BiggerPockets to Build Your Business

The BiggerPockets Keyword Alert System

@Brian Eastman thanks for this valuable information! I think it is awesome that you essentially get to become the "fund manager" under your own IRA. Great information!

@Chris P keil Yes there are great local gatherings to network with other investors. If you go to the "Network" tab at the top of the page and click on "events" you can enter in your location and find local meetups. 

If you are in a location that doesn't yet have one you can always host one as well!

@Chris P keil Welcome to the BiggerPockets forums! We are glad to hear that you have finally joined the discussion of Real Estate! I would recommend uploading a picture of yourself so people can put a face to your comment and know that you are a real person. =) 

Here are some awesome links to help you get started! 

@Denton Beam I noticed you posted the numbers of this property in a separate comment. 

It might be easier to go to the initial post and click "edit" to add an additional comment on the original post so that people will see the number calculation. =)

Can you send the details for this property?

@Account Closed First off I want to congratulate you personally on diving into RE at such a young age! There are many people out there your age that are not even thinking about their future and here you are reading books and educating yourself so I commend you for that. I can honestly say that I have been in your shoes before in regards to not knowing all the terms and I understand that it can be frustrating at times. I believe that surrounding yourself at RE meetup groups and REI groups will help you tremendously. Raising your hand and asking the speaker at these "what is a cap rate, I don't understand?" will not only help you learn these terms but will also help you network with the right people to help surround yourself with other investors. If you tell them where you are coming from and how you are 16 years old already reading books on Real Estate Investing, people are going to admire your drive and aspiration.

Also a phenomenal book that will help propel you will be a book by Robert Kiyosaki called "Rich Dad Poor Dad". I would put that on the "to read" list. Good luck!