patrick.net

burritos says

Asking price=$184,900. I offered 160k, bank countered, $184k, I countered 161k..

Good man! your doing it right! Two things in life are inevitable: death and taxes. Everything else is negotiable.

E-man says

Burritos,

That's a loaded question without a lot of info. Is the property in move-in condition? How much additional money do you have to spend on it to make it rentable? What's the FMV on the property? How's the housing inventory there? How's the rental market there?

Learn from your victory. Prosper from your failure.

1. Move in ready. I do have to buy a frig, washer, dryer, and a few blind(estimating 5k). No carpet, paint and wall repairs like I had to do with the grow house I got a year ago.
2. FMV is 180k for move in ready, though the last few that were sold, sold at 160k(they were fixers needing carpet, painting).
3. There's an ample supply of homes of that size, though most are short sales. The prices that are being dangled out there are between 180k and 200k. 50/50 are being purchased by primary home owners/investors.
4. This area has about 1100 new homes that were built and sold 2004-2007. We're at the tail end of the ARM resets though of course the casualties will linger for years. As an investor, the cash flow has been positive for the last 2 years with 20% down for these properties, though the cash flow has slowly improved with with drop in prices.
5. Rental market is strong. Of the properties I've acquired and rented out, I've never had to wait more than a month to get it rented out. The last 2 properties I've gotten took less than 2 weeks to get rented out.

That's the way to do it, Burritos. They go down only 1k, you do too.

Hope you get the property at your price!

You are dealing with a business, not a families emotional ties. They focus on ONE thing, the highest return. If you were dying of thirst, they would not offer you the sweat off their assets.
They will violate you smiling.
Find at least three better properties and offer them the honor of your business. Remind them, it will be worth 20% less next year !

TMAC54 says

You are dealing with a business, not a families emotional ties. They focus on ONE thing, the highest return. If you were dying of thirst, they would not offer you the sweat off their assets.

They will violate you smiling.

Find at least three better properties and offer them the honor of your business. Remind them, it will be worth 20% less next year !

How much invested ? How much back ? What's the risk ?

Yeah. My realtor sent them the last 2 sales which where sub 160, thought those were fixer uppers.

I REALLY want to pay under 170k. But I also REALLY want the property also, cause I think the cash flow works well. I just can't decide which REALLY is more important.

My realtor got an email from the seller:

"Thank you for submitting an offer on the above referenced property, however the Seller has decided to REJECT your offer at this time due to offer price being too low. If your client is seriously interested in pursuing the property, you may submit a revised offer to be presented to the Seller through their *********.com website."

I resent the implication that I'm not seriously interested. I could argue that seller(which was bailed out by my tax dollars) isn't seriously interested in selling the property.

You should have countered lower, 159K. That is the sign of power and banks have absolutely no power now in this game. One paper they are bankrupt entities. Your 159K in the positive make them envious.

It doesn't mean your bid is low relative to other bids, could be the highest. Is below the reserved price for sure. The seller is hoping that you would resubmit.

burritos says

"Thank you for submitting an offer on the above referenced property, however the Seller has decided to REJECT your offer at this time due to offer price being too low. If your client is seriously interested in pursuing the property, you may submit a revised offer to be presented to the Seller through their *********.com website."

Here is your reply

"My friend. Thank you a thousand times over for your consideration on buying this beautiful property. I am deeply saddened by the rejection from the Seller. If your Seller is seriously interesting in selling the property I encourage him to again consider this offer from a very serious buyer. I am willing to again offer to purchase the property for the large sum of $160,000, which is very generous considering the current state of the housing market and the overall economy. This offer is only valid as long as I have the means to extend it. There are multiple competing properties on the market and I have many bids outstanding. The first serious Seller to accept my cash will be the winner.

Your truly,
Serious Kickass Buyer"

The problem is you should never counter above your last offer price.