We Made This Deal Happen! Pay Us What We Deserve!

Recently a local investors approached us with an incredible opportunity.  If we could make it happen.  This particular investor due to recent hardships was facing foreclose on all 30 of his properties 38 units total if you count the duplexes.

According to the banks appraisal these properties were worth between $2M-$2.25M.

Since none of the members of Vizion are NBA players with million dollar salaries and since the banks due to the “credit crunch” were unwilling to lend us few millions dollars.  We did what we do best.  Find and investor whose looking for a deal.

Finding an investor for this particular deal wasn’t difficult.  Especially once we negotiated with the sellers bank to let us have all 30 properties for $1.3M.

Add in the fact that that these properites are already 75% occupied and that the average monthly rental revenue is $25k and almost anyone with the available financing would be crazy not to jump on this deal.

With a willing investor on the line and a proof of funds sent to the bank only one small detail was left to be resolved.

Our compensation.

A few things to keep in mind.

1.  None of these properties were listed on MLS so unlike a regular real estate transaction no commissions  had been outlined.

2.  The investor in danger of losing these properties got in contact with us do to our networking and marketing efforts.

3.  The Rent Company our property manager has already been briefed and is ready to take over management of all 38 units immediately upon closing.  Thanks to this little courtesy the investor won’t have to shop around for someone to manage these newly purchased properties.

On the upside the investor is willing to pay us for our due diligence of researching each property, structuring the deal and negotiating with the sellers bank.

On the downside we feel that what the investor is willing to pay us is not worth the work we put into the deal.

Me and my partners feel that 6% of the purchase price or $78,000 would be acceptable compensation for making this deal happen.

The investor thinks otherwise and we think he’s leaning towards 3% or a figure of $39,000 for compensation.

Due to this snag the deal has come to a bit of standstill.

What do you think?  Are we asking to much for compensation?  Do you think we should just settle for less?

Kansas City Homes For Sale

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One response to “We Made This Deal Happen! Pay Us What We Deserve!

  1. It is only going to get worse. Next year we break an all time foreclusure filing record.

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