Some out of town investors say they want something and then come in and decide to low ball or they do not want it anymore etc.

So to accept a cap rate of 7% I need to obtain capital at 4% or lower.I know this isn't precise but I hope it provides some help.Good Luck.Bill

It's a small world out there and my name will get around as a "low ball" investor.What do you all advise?

The BI/PM decision making doesn't take that much sophistication, just a simple data base, some ball-park historical operational data, and determination on the part of your operational staff.

If it's been listed a while and hasn't sold, you might try a real low ball offer first.

One thing that helped me get the ball rolling was to set clear, specific, measurable goals.

let me know if I screwed up anywhere or you wanna chat more on this.But my personal view: I'd pass or low-ball them something around the $150k mark.

I can't use the income approach, its a small town with maybe 3 restaurants or so, comps are nonexistent (I think) and its been vacant for a few years now.According to the assessor the land and building value is $50,500 (I'm using that as a ball park number) although the current owner did pay 300,000 for it previously.

I'd stay away from short sales, as banks are getting hip to investor low-ball offers and BPOs are trending up quickly these days.

My (NON-CPA) understanding is this:2 years ago, you could:-Write off the up front mortgage insurance premium-Write off the monthly mortgage insurance premium-You were "grandfathered" into these rules if you bought your home using FHA back then, so you can continue to write off the monthly premium-MIP falls off at 78% of LTVUsing FHA today:-Up front premium no longer tax deductible-Monthly MIP no longer tax deductible-MIP NEVER goes away, regardless of LTVAgain, I suggest you consult with a licensed tax advisor to confirm all of this is precisely accurate.