Posted on 06. May, 2010 by Carey 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.