Main concern…what YOU can pay - Posted by John Merchant
Posted by John Merchant on January 06, 2011 at 15:15:46:
Because owners are getting zero rent/income now, I’d advise just concerning yourself with what YOUR needs are now, what you could justify paying, what lease or rent length (term) would best work for you, etc.
It might sound paltry and unreasonably low to you but what the heck, if it’s what YOU can justify then make an offer based on that.
When O responds then you can adjust to make the deal fit both of you but his response might be lower than you anticipate.
Late and great Barney Zick a great RE lecturer and true guru told of many deals that he’d fallen into where RE and buildings were basically just handed to him at very low or sometimes NO cost.
Doing enough RE deals you’ll see this happens, sometimes present owner is so frustrated he/she just wants out and would give title to anybody willing to take on the RE taxes and responsibilities of ownership.
A REA buddy of mine got me into one of these deals and it ended with owner of little legally besieged triplex giving me the deed free and clear; seems he’d offended everybody at city hall and all were now totally inimical to O’s plans to rehab the triplex.
Interesting that once I got into ownership and started sweet-talking City Bldg Dept guys they turned into real friends and helped me get the rehab permits w/o hassle.