Want Opinions On This Offer That I've Made
Ok hello all and thanks already to those that post replies. 
Ok this is the deal its for 2 properties both are 4-Families and both cost $489K each also they are from the same person.
The current yearly gross rent inc. on the properties is $86,400.00/both which I think is low for the total asking price of the 2 properties that is $978K on both which is only 8.8% of the property value since I am a mortgage originator and have done many deals for other people I always noticed that 10% is usually the min for a good return on the investment which likely means that they are over priced or rents are low(in here the rents are about right I might be able to increase it a little more) but the properties are over priced(had tried to finance then to someone else before apprasal came in much lower, seller doesn't want to negociate on the price it seens, so I am tring terms with this).
The total property yearly expenses for both building is $11,190.10 which includes Gas, Electric, Water & Sewar, Insurance, Taxes, Snow/Yard Maint.
I broke down my deal offer like this:
3 Year Lease Option
I'll lock price on both units at your asking price of $479,000.00 for 3 year - $978K
Payment of - $5,760.00/mo
A monthly credit concession in the amount of - $2,980.00/mo
I'll take repair responsibilities up to - $432.00/repair/replacement(a little over as long as it doesnt go over $500.00)
I left a time by which my offer was still good.
I'll leave this offer on the table, good for the next 48 Hours If you are not interested I'll apreciate if you'll notify me.
in the end I if the owner accepts this offer in the next actual 48 hours in 3 years it would break down like this.
$21,156 would be on my pocket after 3 years for basically management...(damn my work is so cheap 
) but if I get my rent increase like I am stipulating and extra $400 bucks per building or about 100 bucks per person i should be a little better at $26,880.
the total credit at the end would be $107,280 + $21,156= $128,436 which in turn at the end would equal a small 13.13% down payment after 3 years.
Posted this offer a little while ago to the seller will wait and see if he bites or not if not it's not really a loss I just wanted to be able to make my first L/O I dont personally care which way the seller goes since I never had I am not losing anything either. By the way for those that will ask if the apprasal came lower why doesn't he lower the price... I talked to the broker that has been holding the deal and he told me behind doors that the seller doesnt care what the apprasal is he wants it sold for that because he believes its worth that much....(yes I know the seller is crazy)
Better stop here before this turns into a book . ok guys ready for all your comments.
Comments(0)