Buyer is Sleeping (by Ray-N-Pa [PA]) Jun 7, 2023 2:45 PM
Buyer is Sleeping (by MC [PA]) Jun 7, 2023 3:51 PM
Buyer is Sleeping (by MikeA [TX]) Jun 7, 2023 4:12 PM
Buyer is Sleeping (by RB [TN]) Jun 7, 2023 4:22 PM
Buyer is Sleeping (by plenty [MO]) Jun 7, 2023 4:36 PM
Buyer is Sleeping (by Ken [NY]) Jun 7, 2023 4:38 PM
Buyer is Sleeping (by James [GA]) Jun 7, 2023 4:40 PM
Buyer is Sleeping (by Jim [OH]) Jun 7, 2023 5:04 PM
Buyer is Sleeping (by zero [IN]) Jun 7, 2023 5:09 PM
Buyer is Sleeping (by Ray-N-Pa [PA]) Jun 7, 2023 5:57 PM
Buyer is Sleeping (by Ken [NY]) Jun 7, 2023 6:26 PM
Buyer is Sleeping (by Ed [CA]) Jun 7, 2023 6:54 PM
Buyer is Sleeping (by 6x6 [TN]) Jun 7, 2023 8:43 PM
Buyer is Sleeping (by plenty [MO]) Jun 7, 2023 9:07 PM
Buyer is Sleeping (by Ken [NY]) Jun 7, 2023 9:09 PM
Buyer is Sleeping (by 6x6 [TN]) Jun 7, 2023 9:58 PM
Buyer is Sleeping (by BRAD 20,000 [IN]) Jun 8, 2023 1:18 AM
Buyer is Sleeping (by Oregon Woodsmoke [ID]) Jun 8, 2023 9:48 AM
Buyer is Sleeping (by Dodge [PA]) Jun 8, 2023 10:16 AM
Buyer is Sleeping (by MessManager [IN]) Jun 8, 2023 12:47 PM
Buyer is Sleeping (by MessManager [IN]) Jun 8, 2023 12:47 PM
Buyer is Sleeping (by tryan [MA]) Jun 8, 2023 1:11 PM
Buyer is Sleeping (by Ray-N-Pa [PA]) Jun 14, 2023 10:10 AM
Buyer is Sleeping (by Ray-N-Pa [PA]) Posted on: Jun 7, 2023 2:45 PM Message:
Sometimes I just want to smack a buyer upside the head to wake them up. Without looking at the cost of money - a sales price doesn't mean too much.
I have small commercial building where the buyer has looked at it three times. The buyer wants to talk me down $35,000 on the sales price since he has to do $90,000 in upgrades on the place.
He has been heee haying around for a while and said he was even considering this place over a year ago.
I told him thank you but his numbers simply don't work out. The building itself is only $135,000 to start with. There isn't anything cheaper than this place. It is a block building with metal siding and a metal roof. The floor is concrete and five to six inches thick. It could use new windows and a new man door.
I explained to him that given what he said he needed to do with teh place, that last year the monthly payment would have been just over $1,500/mo. I explained that by waiting this extra year that the month payment is now $2,100.
Hs reply was that he will go with new construction. So running those number the new payment will be $2,600/mo.
Running these monthly payments over the course of the 20 year loan, waiting has cost him over $120,000 in added cost, and doing the new construction path will be an extra year and $210,000 in extra cost.
All this so he can brag that he can save $35,000. WHACK - stop dreaming Mr Buyer, you are only drawling over yourself
I am in no hurry at all to sell this place - it is renting out for $1,300 a month. I owe nothing on this place and I do have a place similar to this one under contract that I am buying. --24.101.xxx.xxx |
Buyer is Sleeping (by MC [PA]) Posted on: Jun 7, 2023 3:51 PM Message:
His problem, not yours. Don't try to talk him into it- I am referring to the figures you gave him. --73.230.xxx.xx |
Buyer is Sleeping (by MikeA [TX]) Posted on: Jun 7, 2023 4:12 PM Message:
It ain't over til the fat lady sings. This might simply be a negotiating tactic, he may come back at some point. --209.205.xxx.xx |
Buyer is Sleeping (by RB [TN]) Posted on: Jun 7, 2023 4:22 PM Message:
On my end, its the Seller.
Way to much Baloney going on after our written agreement
was signed, 4- months ago.
Life's not hard, people are. --24.183.xxx.xxx |
Buyer is Sleeping (by plenty [MO]) Posted on: Jun 7, 2023 4:36 PM Message:
Well, that's interesting. Maybe he will be back around to buy a year from now and your sell price is $145k. I can't image building is any cheaper! --172.58.xx.xx |
Buyer is Sleeping (by Ken [NY]) Posted on: Jun 7, 2023 4:38 PM Message:
He has no reason to think you would take less,he approached it all wrong.If he did some research he would know how much you paid and that you dont owe anything on it.He should have asked for you to finance the sale with a down payment and then tried to get you to take a lower interest rate.He kept coming back to see the place because he didnt have the knowledge or confidence to speak to you confidently about the place --74.77.xx.xx |
Buyer is Sleeping (by James [GA]) Posted on: Jun 7, 2023 4:40 PM Message:
Go Ray go.
He'll be back if he is good at math. He wanted a better deal, can't fault him for that. --217.226.xx.xxx |
Buyer is Sleeping (by Jim [OH]) Posted on: Jun 7, 2023 5:04 PM Message:
I didn't see a question here. --184.57.xxx.xx |
Buyer is Sleeping (by zero [IN]) Posted on: Jun 7, 2023 5:09 PM Message:
Here we go again with me not understanding the situation.
He has shown multiple times so he obviously has an interest. He can't deny that. You are going to stick to your original deal no matter what.
My question is why sell the place for 135k when you are getting 1.3k/mo and you own it? Do you have to take care of the building with your current lease? If not I would think those numbers are pretty good.
Remember that I have no commercial so I am talking from a different perspective. --107.147.xx.xxx |
Buyer is Sleeping (by Ray-N-Pa [PA]) Posted on: Jun 7, 2023 5:57 PM Message:
Ken,
So true.....and in fact he may have seen exactly how much I paid for it and that could be the reason why he trying cheap out on me. I think it was 62-ish
Zero,
Why sell the place? I have another place that I am eyeing up that would be an ideal replacement property on a 1031 exchange. A NNN Mexican restaurant that is located in a place that was previously a Wendy's ten years ago or so. Numbers on that place have a comparable Cap Rate, but the place is for sale at $495,000 ish.
James/Mike,
Thanks for putting it into perspective.
Jim - no question.........just some normal head ponding on the table for me.
For the group - I am due to close on place that I am buying that is very similar to this place end of this month. Would it make sense to offer him the new place for rent after we close on it? At this point, the buyer has the impression that I am using the place he is looking for warehousing. It isn't me who is using it.......this might hit him the head like hammer when he considers I am a Landlord and not a manufacturer/builder of chocolates. --24.101.xxx.xxx |
Buyer is Sleeping (by Ken [NY]) Posted on: Jun 7, 2023 6:26 PM Message:
I would think he wants to buy something so he is probably going to buy,moving to another rental would probably be just temporary but it doesnt hurt to ask him --74.77.xx.xx |
Buyer is Sleeping (by Ed [CA]) Posted on: Jun 7, 2023 6:54 PM Message:
There's no shortage of ignorant buyers. I think you have one on your line. --108.201.xx.xx |
Buyer is Sleeping (by 6x6 [TN]) Posted on: Jun 7, 2023 8:43 PM Message:
Just curious, If the tables were turned, he was the seller and you were the buyer, how would you negotiate to buy the property?
Ken, how would you do it? --73.190.xxx.xxx |
Buyer is Sleeping (by plenty [MO]) Posted on: Jun 7, 2023 9:07 PM Message:
Counter offer? 6x6 hit it! --172.59.xxx.xx |
Buyer is Sleeping (by Ken [NY]) Posted on: Jun 7, 2023 9:09 PM Message:
6x6 When i speak to someone i try to get a gauge of how motivated they are and i doubt Ray showed any signs of motivation.I then look up the seller on the county clerks website and in this case would have found he owes nothing on it,my wife calls the tax collector and i assume would have been told taxes are current.That would have been the end of it,no reason for him to sell it cheap.I am not a great negotiator but i have learned who to negotiate with.When i start doing my research i often see foreclosures started by banks,i see judgments and taxes that are way behind.Suprisingly they are usually honest with me and just want the problem to go away and will tell me the whole story.A young cousin is getting in the business and i went with him to look at a house and i started asking questions and the woman was answering me and told us the whole story.He told me later he was surprised she didnt punch me in the mouth for the questions i was asking her but in the end we solved her problem and she appreciated it.Most people with this many problems are not even thinking about a profit,they just want the problem to go away.If you are there sincerely trying to solve there problem they will tell you the whole story and with the whole story i can come up with a solution that should be good for both of us. --74.77.xx.xx |
Buyer is Sleeping (by 6x6 [TN]) Posted on: Jun 7, 2023 9:58 PM Message:
Thank you Ken. --73.190.xxx.xxx |
Buyer is Sleeping (by BRAD 20,000 [IN]) Posted on: Jun 8, 2023 1:18 AM Message:
RayRay,
I feel your pain.
Most people cannot make a decision
OR
there is something else holding him back, like maybe no money?
Keep moving forward. He MIGHT show up when he's ready.
BRAD --73.103.xxx.xxx |
Buyer is Sleeping (by Oregon Woodsmoke [ID]) Posted on: Jun 8, 2023 9:48 AM Message:
If he has been considering your place for a year, he doesn't need it. If he needed a building, he would have bought one. If he didn't like the price on yours, he would have found something else and if there wasn't anything else, he would have paid what it cost to buy yours.
I'm going to assume that you are not waiting around for him and you are looking for other buyers. --76.178.xxx.xxx |
Buyer is Sleeping (by Dodge [PA]) Posted on: Jun 8, 2023 10:16 AM Message:
Lots of good discussion. To play devils advocate... what if the forecasted CRE gets as bad as some are saying? Perhaps the buyer is just thinking of waiting until the deals show up?
Hopefully your tenant(s) stay and you'll still have the cash flow even if the building comps drop significantly.
--174.54.xxx.xxx |
Buyer is Sleeping (by MessManager [IN]) Posted on: Jun 8, 2023 12:47 PM Message:
This tactic only works when seller is distressed. I am not distressed; I showed you the place 3 times and reject your verbal and written offers. I am done returning the investor's phone calls, text, and emails. Your numbers and my numbers are on the table and too far apart.
I make offers and let it simmer.
Casually and very friendly send reminders to sellers or Seller's agents my offer is a good long term offer that will not change with lending standards or interest rates. I always play the long game. Always send congratulations to sellers when it sells.
One deal the mother did not sell to me; 3 years later the son sold his home to me at a huge discount with owner financing. --98.97.x.xxx |
Buyer is Sleeping (by MessManager [IN]) Posted on: Jun 8, 2023 12:47 PM Message:
This tactic only works when seller is distressed. I am not distressed; I showed you the place 3 times and reject your verbal and written offers. I am done returning the investor's phone calls, text, and emails. Your numbers and my numbers are on the table and too far apart.
I make offers and let it simmer.
Casually and very friendly send reminders to sellers or Seller's agents my offer is a good long term offer that will not change with lending standards or interest rates. I always play the long game. Always send congratulations to sellers when it sells.
One deal the mother did not sell to me; 3 years later the son sold his home to me at a huge discount with owner financing. --98.97.x.xxx |
Buyer is Sleeping (by tryan [MA]) Posted on: Jun 8, 2023 1:11 PM Message:
I don't negotiate verbally .... I say "Put it in writing" no matter how ridiculous. That ends the look-see-loos. --198.168.xx.xxx |
Buyer is Sleeping (by Ray-N-Pa [PA]) Posted on: Jun 14, 2023 10:10 AM Message:
I appreciate the various inputs. I sent them a text asking them for a list of there comps, the CMA or the appraisal that they are using to make up their mind.
I feel pretty sure, they are tire kicking.....Tryan is so right on this one. --24.101.xxx.xxx |
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