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29 September 2016 | 20 replies
They accepted and moved out.
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14 October 2016 | 22 replies
My Offer was accepted and I financed two of them by the owner at 9% with $10,000 down because No Money Down Deals were too hard to find and work out.
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27 September 2016 | 3 replies
My concern is if I'm doing a house and then they accept the offer and then I got two property in my hands.
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3 October 2016 | 20 replies
Some advice would be really helpful here and time is short here since they may accept the other offers before mine.
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27 September 2016 | 1 reply
Hi everyone,If I get an offer accepted that is listed with a realtor, do I have to then do a double close?
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30 September 2016 | 10 replies
If she doesn't accept, move her out.People will tug your heart strings.
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30 September 2016 | 5 replies
I get an architect site visit and sketches within 48-hours of getting an offer accepted.
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29 September 2016 | 4 replies
What is the likelihood of an accepted offer at that much of a discount?
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3 October 2016 | 22 replies
I accept a below market rate for above average tenants.
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29 September 2016 | 11 replies
What I keep finding out is that my target price is always at least 20% below seller's asking price.Here are my rules/metrics:total economic loss after property is stable is 12% (15% in lower quality areas)incremental rent growth after the property is stable is 2%expenses grow by 2%/yearproperty tax is 90% of the purchase price multiplied by a local tax rate (usually doubles tax from whatever seller pays)payroll $1000-1200/unit regardless of the property size (brokers claim that 30-units don't need payroll but I don't believe them :-) )reserves of $300/unit counted in expensesexit cap rate is 100 basis points higher than current cap rate (e.g. exit at 8% if current cap rate is 7%)cash-on-cash ROI 10%+ starting in the second year; first year may be lower if this is a value-add5 years total ROI (assuming sale) is at least 100%IRR 15%+ over 5 years (al ROIs are net to investors after 20% sponsor override)I can adjust may metrics to some degree but in order for me to get to the seller's acceptable price I have to adjust most or all of them to unsustainable levels.So, what should I do other than keep underwriting and waiting until the market turns down and all of a sudden my numbers would make sense for a seller?