Help with negotiations - Posted by Stew (Nebraska)

Posted by charles (delaware) on March 25, 2000 at 22:49:49:

anybody can buy something betting on future appreciation. Who is to say the market will continue to appreciate with interest rates, etc? The seller wants too much money. If the property does not provide a good return and cash flow why mess with the hassle of tenants, liability, maintenance etc?

you are investor with real money and debt and credit and time to invest. you deserve a return for that investment. ESPECIALLY in rental properties. Otherwise stick your money in a mutual fund that will get atleast 10% to 15% per year with less hassle and liability.

good luck

Help with negotiations - Posted by Stew (Nebraska)

Posted by Stew (Nebraska) on March 25, 2000 at 21:25:42:

I found a guy who has 2 houses and a duplex for sale. He is having an apartment built and will do a 1031 exchange with the current properties for the new properties.

Duplex 166000 (Two rents for $700 each, rent is below market value by at least $100)

Property 1 (Appraised at 104 selling at 102, currently rented at $900) I can’t get it to have a positive cashflow until I get down to $90000 (which is what I offered). I can get a loan for 10% down, but I don’t want to tie up around $11,000 in one deal. Especially for a break-even cashflow. Appreciation is around 6% per year.

Here is what I need help on:

He says he has to sale his house 45 days before and identify the new property in order for the 1031 to work.
The new property will be ready in September. I approached him about doing a lease-purchase. he doesn’t want to take the chance because he knows he can sell it before September. Any ideas from the pros???
This is one of those real tempting deals because its in a great area, I could handled a negative cashflow that would be offset by other rental property. I am sure the prperty would appreciate. But it is totally against “Rich Dad, Poor Dad”. As a matter of fact i would have about a $80 dollar negative cashflow, just like he did in the book. Hmmmm…
I think I know the answer to this one. Sometime you just have to talk it out. Next.

Re: - Posted by Rich

Posted by Rich on March 26, 2000 at 06:39:55:……Based.on.the