Posted by Sue on September 13, 2004 at 17:10:12:
E.Eka, I really don’t think this bldg. is going to cash flow too well, because, like I told Stan, the deal is too dang skimpy and I would probably lose everything. I’m glad all you people are helping us new beginners. Thanks
Anything wrong with this - Posted by Sue
Posted by Sue on September 13, 2004 at 08:16:30:
I am a new investor This is my Idea of real estate investing: Suggest/ask always, anything to make a deal work for you. I am an extremely bold person when it comes to real estate investing. I will offer a deal that works for me and then ask,“will this work for you”? There is nothing too crazy that I won’t ask. Now, I don’t know if this is wrong, but when it comes to real estate, to me, If it’s agreeable to both sides, then what is wrong with that. Should I not ask? I know I am going to be asked if I am nuts sometimes; That’s very rude, but, however, that’s par for the course, you are going to find lot’s like that. I can handle that. I don’t mind paying a little extra if the terms suit me. Now, I am presently not employed, but do have some income. I have lived now, (honorably, no hanky panky) for close to 15 yrs by my own resourses. I am a survivor, I am a woman and I know my self worth, but that doesn’t cut it with the banks. For this reason, I got to be bold with potential sellers. I’m not out to con anyone, but for a little higher price, I want a deal to work for me to. Anyway, I called on a 5-apt bldg, owners say they don’t need to sell, bullsh*it I say, why publish it in the first place. Ad says $199k firm with rents totalling $2k per month. Bldg is up to city code with each unit registered. Everyone has their own electricity meter. Each unit is rented. There is an assumable mtg of about $120k. I want to structure the deal where I get $10k at closing or do a lease option and pay the sellers some money a month over and above the mtg payment (from the rent money) on the $120k and also offer to give the sellers a higher selling price. Now, I will use my “will this work for you” strategy. I don’t have any money down, hence the paying a little higher purchase price. The owners don’t want the hassle of travelling to and from the property. The people have several properties that they want to sell also. I have not even seen the bldg yet, I’ve got no comps, inspections or appraisals on it as yet, and I wouldn’t mind doing it sight unseen. I know that’s not a good idea, but we’ll see. My offer will probably be nuts, or yet!!!, not so nuts; They just may accept. Please tell me where I’m going wrong, also, I guess, I want to convince myself that it’s ok to make unconventional offers. Is my way of doing real estate ok?
Oh my… - Posted by Stan
Posted by Stan on September 13, 2004 at 15:40:36:
I got a headache just reading this post. You are treating this deal like a circus/fair exhibit. It is going to take a lot more than “Will This Work for You” to make a deal. 2k/month on a 200k deal. Plus factor in vacancy. And sight unseen. This might be your firt deal, but it could also be your last deal. Do not make a deal just to make a deal. If you have not seen a property, how about write us back when you have a property that you can actually lay your hands on.
I think that I am going to take an asprin…
Tons wrong… - Posted by E.Eka
Posted by E.Eka on September 13, 2004 at 09:27:18:
I don’t know where you’re going with this. Real estate should be treated like any other business. You should make sound decisions that you think will benefit you in the present and future. Always think about your future ramifications. DO i think you can get the apt complex with no money? Doable, but maybe unlikely if this person doesn’t really need to sell. The point is, sucessful people “usually” prepare, and make good decision based on facts. YOu never want to buy an apartment complex sight unseen. What if there was a major problem pending? You have no money, you’d be ruined. I’m not saying don’t look into it, but don’t do a deal for the sake of doing a deal. DO a deal BECAUSE it makes sense to you.
Re: Oh my… - Posted by Sue
Posted by Sue on September 13, 2004 at 17:01:49:
Stan, thanks for replying to my “anything wrong” post.Skinny deal huh, not much of a cash flow. Points well taken. You have educated me and that’s what this board is all about. I will tread lightly on this one. You are right I always pay too much, I know the money is made when you purchase.