Received counter offer on 34 unit!

Posted on 06. May, 2010 by in Atm Deals, Commercial Real Estate Brokers, Direct Marketing Campaign, Finding Apartment Buildings, Internet Businesses, Makin' Offers, Multi-Units/Apartment Buildings, Passive Income



I did the numbers on a few properties Kathy and I seen the other day with a broker. I told the broker what I was thinking 1.2 Mil on the 36 unit property, which they are asking 1.8 Mil and he said, “did you mean 1.2 Mil for the other property cause that’s do-able?” I told him that I meant it for the 36 unit, he said it would fly. So I came back later and told him, ok we could do 1 Mil for the 34 unit (that’s the one he mentions above about 1.2 Mil.) This property is listed at 1.3 Mil. He tells me, “if you can do 1.1 Mil I’m sure I can get the deal done.” Now I know I’m negotiating with the broker at this point, but the reality is I say to them “look I don’t want to offend the seller, what do you think of this offer?” So they don’t think I’m a jerk or anything, ya know?

Realistically, I think we could offer 1.1 Mil, but I think I’m more comfortable with the MAO of $1,050,000. So I countered back at $1,015,000 and told him to let me know what the seller says.

Also, had a conference call with a broker team yesterday to go over a property we saw with them. They are asking 1.6 Mil and realistically our MAO is about 1, 375,000 ish….they paid 1.4 Mil for it 2 years ago….they weren’t having it. But the broker team is super duper nice. I wish they would get us some more properties because I’d love to see them make a commission because they are so helpful, the broker I mentioned first is kind of a jerk (for now.)

I’m heading to the courthouse to see if I can somehow fanagle (how do you spell that?) a list of evictions that were awarded to landlords and they will become my new “direct mail list.” I think I really want to find MOTIVATED landlords that own apartment buildings….I know they are out there. So far only the small guys are calling me back…..I want the bigger complexes to call me too!




I have a good feeling tho that most deals will come from brokers and not what the places are listed for, but what you can negotiate fairly.

I went to Toastmasters again last nite and it was a lot of fun. I made the decision to join the next time I go and surprisingly enough Kathy told me she was going to join too! Which is really strange because she is scared crazy of public speaking and told me she doesn’t even want to get up at Tmasters. But I think she had a lot of fun there the last time I took her there so hopefully she’s coming around!

The job hunt is not going so well. Which may be a good thing? I dunno. I mean I need money BAD but I’m really not so fond of a “job” per se. I probably wouldn’t even be thinking of finding a job if I didn’t switch gears into commercial real estate. I could have definitely made a decent living from wholesaling, but switching gears into commercial real estate is like completely starting over. I mean that’s ok because passive income is where my passion is, but it is harder and taking a whole lot longer than I anticipated.

Ohhh I’ve also been working on my Gay Marriage website. I look at my adsense stats and my traffic and I see I’d be making a ton more money if I just got my traffic back up to where it used to be when I use to work on it all of the time. Plus, if I had more traffic, I could also solicit more business from attorneys and other types of companies to advertise on the site. I have a few now, but nothing major yet. So my goal is to work on that some more in the evening and get it back up in the ranks where it use to be and then start sending out emails and calling folks to advertise. I think it could be a realllll money maker if I put just a little bit of effort into it everyday (perhaps that could be my 9 to 5 job after it gets rolling while I concentrate on commercial real estate.

One more thing: we have an appointment tomorrow to meet with another potential ATM site. I made the decision to pull the machine from the newer chinese buffet place. They don’t leave the machine on all of the time after me telling them repeatedly to do so, so I told them we’re pulling it. I wonder how the small business loan environment is? Because the only think that stops us from buying up a bunch of machines and just pounding the pavements and putting them in tons of locations is money. I’d say realistically we’d need about 20 to 25 machines out there working for us to live just fine, while we concentrate on commercial real estate (well I’d be just fine, that’d still below what Kathy makes.)

So, we would need 14 to 19 more machines then…and that equals about $42,000 to $57,000. Hmmmmmm. Something to think about. Obviously, there isn’t much money coming in when you’re out developing business, of course. But after they are all placed there is. Something to think about. I don’t think our LLC has been around long enough tho. I remember last time I got LOC for my business I had to be in business for at least a year. We’ve only been doing this since July of 2009. Something to think about.

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6 Responses to “Received counter offer on 34 unit!”

  1. Tim

    06. May, 2010

    Another case of the government not having a clue as to what they’re talking about.

    http://www.marketwatch.com/story/senators-propose-capping-atm-fees-at-50-cents-2010-05-05

  2. Tim

    06. May, 2010

    I sent a comment with a link but I don’t think it came through.

    Please go to atmmarketplace-dot-com and see an article about Senator Harkin (D-Iowa) proposing an amendment to limit ATM fees to $0.50/transaction.

    I am just starting out in the ATM world (no machines yet) and this has put a halt to things for me until a vote–as yet unscheduled–is made.

  3. Flippin' Carey

    06. May, 2010

    Wow. I missed that article. I get stuff from atmmarketplace everyday, but didn’t catch that one (probably because it’s there along with a billion other emails!)

    Anyway, Senator Harkin has a good plan for SCREWING the small business owner. Why? Because 80% of atm’s are independently owned and operated. Sure some of these independents may be bigger but the majority are like you and me aka small business owners!

    While their at it….I think they should make an amendment to make sure that sneakers are no more than $5, because I’m sure they only cost like .50 to $1 to make. And you know what bread…..I think they should cap that at .45 a loaf because it probably only costs about .05 to .10 to make that.

    And d@mn it, I think they should cap the costs of internet, phone, cable, real estate, cell phone service, cars, soda, beer, ceiling fans, house plants, dog food, cat litter and well you get the point. Since when do we put limits on our businesses abilities to make a profit?? Unfknbelievable!

    Thanks Tim. Now you got me riled up today lol Do you know other folks in the atm business? How did you come about thinking you wanted to get involved in the business?

    P.S. Welcome to the blog. Thanks for visiting….come back again!

  4. Tim

    06. May, 2010

    Already wrote a short email to Senator Harkin, explaining the concept of “convenience” as it relates to ATMs and the choice that people have to either use or not use that convenience. Of course, I have zero confidence that he or any of his staff will even see the email, let alone respond to it.

    I actually got interested in ATMs from reading your blog, intrigued with the passive income. For one reason or another (Excuses, excuses. I know.) I haven’t gotten out to get one placed. Now Senator Harkin and those that support him are impeding what little progress I’ve made and I’m none too happy ’bout it.

  5. Flippin' Carey

    06. May, 2010

    That’s a great idea Tim. I’m going to do the same and my partner mentioned already that she was going to do it as well.

    I’m glad my blog has been of some use to someone :-) I hope this amendment thang gets put to rest and you can make even more progress with the ATM business. We have a meeting lined up tomorrow afternoon at a cash-only restaurant…wait I think I’m repeating myself…I think I posted that in the post. Sorry!
    (
    What progress have you made thus far? Have you at least talked to some places? After talking to Steph (who posts here) and a few other folks, I was going to put together an ATM ebook. You know on how to make money with ATM’s and get started in the business. Would something like that have been of interest to you? I was thinking maybe some audios of what to say to potential businesses, contracts, perhaps even video showing how to load up the machines, etc. Also maybe some video on a couple quick fixes for problems that you may run into? Things to watch out for in the contracts with your processor, etc.

    What do you think about something like that? Do you think someone who may be interested in passive income from ATM’s would be interested in such a thing? Of course, this is provided that amendment goes no where. I actually emailed my one processor and asked her what she thought of that? and if that happens often in the industry where someone tries to “cap” the fees. I know the cap right now is $9.99 not sure if it’s like that throughout the U.S. but I think it is…..

    Thanks again for your comments. Feel free to post some more and ask questions!

  6. Tim

    07. May, 2010

    I think an ebook with content you were talking about would be certainly be beneficial. I have already purchased an ebook from another company and it had some very good info, but the book is outdated.

    My job has me gone from home for half the month and when I’m home I’m taking care of an infant (excuses, excuses), so I have only had time to scout a few locations–haven’t talked to anyone yet.

    I remember in a previous post that your goal for ATMs was about $5K/month. I thought that sounded good so I’ve set that for myself as well. Hope you don’t mind. ;)

    Now if only the Capitol Hill Blowhards will cooperate….

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