How does this work? Closing costs for an owner financing deal should be considered how much? What about the agents fee? The on market property I’m underwriting says 2.5% of gross as Buyer Agency Comp. Shouldn’t the seller be picking up the agent’s fee?

Following Chris Voss' recommendation in Ch 8 of "Never Split the Difference" and using the multistep no to get the seller to bid against himself. On the second "No". Let's see how this goes. The game is exciting even if I don't acquire the property.🤣 Gotta get in those reps. Happy deal hunting everyone 😎

One of my brokers passed this over to me while she was looking at another property for me in the area. Turns out it was on the MLS and she thought I might like it given it’s a 5-unit. It’s in Harrisburg, PA and was acquired by the previous owner from a sheriff’s sale for 67k in 2013. Asking 625k with 125k down, 6% over 30 years with a 5 or 10 balloon. Gross rent=77,700 reported expenses = 21,280 (pending schedule E) Assumed NOI (50% exp ratio) = 38,850 CAP= 6.2% 5-2BR/1Ba rented at 6125/mos with 3 garages for 350/mos coin operated laundry in building to offset general area electric. Tenants pay utilities, landlord pays for sewer and water. Estimated expense ratio is 47%. These numbers work but not at 6% interest rate. Agent said seller is open to negotiating. Thoughts?

What are some aspects that you recommend me to check on the below Sub-To deal? --- Pre-foreclosure (Sub-To) Deal in East San Antonio, TX 78223 Property Details: 2020-Build SFH 1-level with 3 Beds 2 Baths, 1,265 sqft Total Mortgage: 213k Current mortgage balance: 162k ARV (Est): 230k Terms: PITI $1,297 @ 3.5%, around 27 yrs left. Long-term Rents for SFH: Listed for $1,500 to $1,600. Cash Flow Year 1: $200 to 300/month --- Total Cash Outlay to acquire: $24k / OBO ($3.5 to book contract) Bank Reinstatement: $13k* Cash to seller: $2.5k Cash towards assignment: $8.5k --- Asked for the address details, photos of current state etc to verify the numbers and if it works, will go check in person.

Hi All, Very recently, completely renovated 6 unit in the city of Allentown, PA. It's an aesthetically pleasing building from the outside and the inside has been completely renovated by a RE investor. They acquired the property in Sept 2021 for $300k and are now asking 1.1 mill after putting in "hundreds of thousands of dollars" From the listing: "All 6 units have been FULLY updated from top to bottom with fresh paint, new flooring, new energy-efficient windows, newly tiled bathrooms, and all new kitchens. Each unit has a massive floorplan, tons of sunlight, and are all 2BR, 1BA. The building features ALL-BRICK construction, has had a total facelift including a facade, and has a very well-maintained roof. Tenants pay all utilities and include reimbursement of $40/mo per unit for water/sewer. Tenants have been there for over a year." Here's what I came up with. Appreciate any feedback: Each unit rented at $1500 and market median rental rates range between $1225-1550 for 1-4 BRs Gross Income 108,000.00 Expenses 22,680.00 Exp Ratio used for Valuation 19.0% NOI 87,480.00 Estimated Expenses* I've computed: Property Taxes 8,421 Other Taxes 1,000 Insurance 4,000 Electric 500 Water 1,160 (1400 less 240 reimbursed by tenants) Maintenance 2,000 Property mgt 8,640.00 Total $32,013 Estimated Expense Ratio 29.64% *Tenants pay all utilities. Debt service assuming: Asking price of 1.1 mill financed at 7.5% for 25 yr with 25% down = $73,160 yields nearly zero CF. Therefore, the only thing that works with hard money is $650K, assuming seller would even entertain this: Investment Required: 182k (25% down payment + 3% closing costs) Cash flow 32,369 assuming 60/40 investor split 10.7% COCR and 12.9% IRR in Year 1 (principle paydown in yr 1 = $6902) Any thoughts, feedback or comments welcome Not sure the seller would agree to accepting an offer 450k under asking, but that's all that makes sense given the environment. Of course, if they don't need the Cash I could come up with an offer to get them to their asking, perhaps with a 5 or 7 year balloon.