selling first rental (by sam [TX]) Nov 15, 2023 6:21 PM|
selling first rental (by Jim in O C [CA]) Nov 15, 2023 7:22 PM
selling first rental (by RB [TN]) Nov 15, 2023 7:23 PM
selling first rental (by David [MO]) Nov 15, 2023 8:36 PM
selling first rental (by Ray-N-Pa [PA]) Nov 15, 2023 8:41 PM
selling first rental (by plenty [MO]) Nov 15, 2023 9:01 PM
selling first rental (by MikeA [TX]) Nov 15, 2023 9:52 PM
selling first rental (by Robert J [CA]) Nov 15, 2023 10:43 PM
selling first rental (by Ray-N-Pa [PA]) Nov 16, 2023 7:35 AM
selling first rental (by zero [IN]) Nov 16, 2023 9:20 AM
selling first rental (by Ray-N-Pa [PA]) Nov 16, 2023 5:23 PM
selling first rental (by Landlord ofthe Flies [TX]) Nov 16, 2023 7:32 PM
selling first rental (by Marcia [WI]) Nov 16, 2023 8:24 PM
selling first rental (by BRAD 20,000 [IN]) Nov 17, 2023 12:17 AM
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selling first rental (by sam [TX]) Posted on: Nov 15, 2023 6:21 PM
I am currently selling my first rental and I am planning on doing a 1031 exchange. I am in a position where I am motivated to sell but not DESPERATE to sell. I have left some room to negotiate in my listing price because I have a number I would like to walk away from to move forward to purchase my next rental. I received an offer which is around 10 grand below the number I wanted to walk away from, it was a cash offer. I contacted my lender and my pay off is actually 3 grand less than I had anticipated so I am actually around 7 grand below my target number. My question is should I just take 7 grand less than my target number so I can move forward with my next property. Or should I wait to see if I can get that extra 7 grand in a future offer. My property has only been listed 16 days so I think I should wait. Any thoughts or suggestions would be appreciated. Thank you --35.146.xx.xx
selling first rental (by Jim in O C [CA]) Posted on: Nov 15, 2023 7:22 PM
All cash is worth consideration. --146.70.xxx.xxx
selling first rental (by RB [TN]) Posted on: Nov 15, 2023 7:23 PM
selling first rental (by David [MO]) Posted on: Nov 15, 2023 8:36 PM
Have you countered on this offer? If not, I would counter.
My thoughts are every buyer has at least one counter.
selling first rental (by Ray-N-Pa [PA]) Posted on: Nov 15, 2023 8:41 PM
Have you looked at properties that you would be IDing as replacement properties?
A seven thousand dollar amount doesn't give us much reference.
In 2023, I bought multiple properties for under $15,000. A seven thousand hit on a $15,000 place is devastating. If you are San Fran, $7.000 is a rounding issue in the asking price.
selling first rental (by plenty [MO]) Posted on: Nov 15, 2023 9:01 PM
Stall. Wait. As you want, wait. Stall for another offer. --172.59.xx.xxx
selling first rental (by MikeA [TX]) Posted on: Nov 15, 2023 9:52 PM
I hope you already have a good lead on a 1031 property, you only have a short window to reinvest. If not, that should be your primary focus. --209.205.xxx.xx
selling first rental (by Robert J [CA]) Posted on: Nov 15, 2023 10:43 PM
There is a lot to learn about selling investment property. I don't know if your selling a 2 bedroom home or a 100 unit apartment property.
When I listed 3 apartment properties, a total of 29 units, I listed with a large well known apartment specialist that turned out to be very self serving. Everyone was in it for themselves and all assurances were just words -- they never intended to be 100% above board.
But, being there and having sold other properties since 1982, I knew a few of their tricks.
1) Their legal department at this broker firm confirmed they would assist a seller with issues. When I asked them to help out, they said they are there only to advise their brokers, realtors and staff, not the buyer or seller. So in the end I sued them for my legal bill and won in court -- a slam dunk because I relied on their representation and sent a confirmation to the broker about the meeting and the responded about their firm going to help in case of any issues or hang ups.
2) I demanded the buyer give me a $25,000 deposit. They had 10 days to conduct all due-diligence, inspections, etc. After 10 days if they did not release the 25 grand into my pocket, then the deal dead and can sell to whomever.
In one case the buyer released to me the 25 grand, all mine to keep, even if a bank won't give him a lone. SO then he put a lien on the property and wouldn't let me sell to someone else, unless I give him back the 25K. --47.155.xx.xxx
selling first rental (by Ray-N-Pa [PA]) Posted on: Nov 16, 2023 7:35 AM
My last commercial purchase Robert, the sellers wanted $50,000 just so I get started in the due diligence period. They wanted another $50,000 after that 30 day period was up and at that point it was all non-refundable. I was alright with those numbers as they were initially looking at numbers twice that size.
The bigger boys don't like tire kickers. --24.101.xxx.xxx
selling first rental (by zero [IN]) Posted on: Nov 16, 2023 9:20 AM
Ray, you dropped 100k just for the time to look at the deal?
Wow, talk about being on another level. --107.147.xx.xxx
selling first rental (by Ray-N-Pa [PA]) Posted on: Nov 16, 2023 5:23 PM
Tenant was a national franchise. These folks sign five year leases and have multiple options So one tenant can pay the thing off.
selling first rental (by Landlord ofthe Flies [TX]) Posted on: Nov 16, 2023 7:32 PM
You said you weren't desperate to sell. However, the longer the house stays on the market, the lower the offers go. I've seen and experienced firsthand, too many situations where the first offer was the best offer. In one case, I actually lost money by not taking the first offer because the housing bubble burst shortly after. If the next offer comes months later, the listing will become stale. Offer a counter offer that's $10,000 higher, then counter their next offer with the $7000 desired. Remember, they'll probably discover some repairs during inspection that will eat into that so stand firm if the repairs are frivolous.
However, given the political year that we have ahead of us in 2024, you might regret not selling/exchanging now. --108.69.xxx.xxx
selling first rental (by Marcia [WI]) Posted on: Nov 16, 2023 8:24 PM
A bird in the hand is worth two in the bush
selling first rental (by BRAD 20,000 [IN]) Posted on: Nov 17, 2023 12:17 AM
Realtors will tell you, and in MY experience, the first offer is usually the best one. OK to counter but waiting seldom brings a better buyer.
Plus the convenience of good timing as a cash offer. HELPS your 1031.
My recent experience selling 6 houses last month is that retail buyers using banks loans OFTEN fall out or flake away, all the way up to me sitting at the closing table to hear they decided to not buy.
I figure I am getting a 37% DISCOUNT on the new purchase because I am not paying taxes on the sale.
The ease and speed of selling is critical to a 1031.
Side note: contact my people at APIexchange.com to make sure your details are handled correctly. One slip can cost you thousands.
I like to have the replacement property lined up and ready for a dual closing. My last one had so many paperwork and wiring issues between my buyer and my seller it came down to 1 day before deadline. Talk about STRESS!!
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