Mr. Garcia, Located a 4 plex $16,000 under AMV - Posted by Marlon in Keokuk Iowa

Posted by Truth Teller on September 30, 2007 at 09:35:58:

That will be a Great buiding if all works out

bet owner pays bills.

Mr. Garcia, Located a 4 plex $16,000 under AMV - Posted by Marlon in Keokuk Iowa

Posted by Marlon in Keokuk Iowa on September 28, 2007 at 07:19:49:

Dear Mr. Garcia,

I first want to tell you how much I appreciate you sharing with me your valuable wisdom and knowledge. I have been reading up on real estate off & on for the past 20 years. As a matter of fact, I dusted off some old reading material and came across some old articals you had written in 2001 for creonline. When I get sucessful maybe we can meet in person. You really sound like a down to earth guy who is willing to share his vast knowledge. That is a very commendable quality. A quality that I would like to share once I get sucessful… I realize your time is very valuable so I’ll get right to the point

I have located a 4 plex with a 4 car garage that is selling for $70,000 ( AMV is $86,900) and above normal cond.

Each unit is identical and has 2 bedrooms -

Each unit is occupied: 2 up rent for $425.00 each / 2 down rent for $400.00 each

Also could I call the seller (who I tracked down through the assessor) and find out his motive for selling? I know you said it does not matter how long someone owns. But I am thinking since he and his wife have owned since 1990 and pd. $53,000, it could be he is just tired. But on the other hand I know, Don’t Assume Anything.

By the way, my new email is: I figured this is more fitting and might add a little bit more integrity when I have it printed on my business cards. Or what about What to you think

One more thing, I still want to try and buy this 2 bedroom house up the street. See if this older couple need the money or if they would consider financing… Why aim for the stars when you can shoot for the moon. That way if you don’t hit the moon, you still might reach the stars.



Re: Mr. Garcia, Located a 4 plex $16,000 under AMV - Posted by Ed Garcia

Posted by Ed Garcia on September 30, 2007 at 07:43:50:


After we last talked, I offered to help you but asked you to just call me when you have a deal to go over. The reason being, I can go over a deal 3 times as fast on the phone as I can on the board. Also, in your case youâ??re still learning the fundamentals and need to learn the understanding of why youâ??re doing what I ask you to do, rather then just do it.

The first thing I question is that you say, â??Each unit is occupied: 2 up rent for $425.00 each / 2 down rent for $400.00 eachâ??. My suspicion is that itâ??s just the opposite of what youâ??re saying and that youâ??ve misunderstood the information given. As a rule if thumb, units on the first floor will command higher rents then on the second, unless youâ??re in a high rise.

Secondly, Marlon, in your case you need to cut your deal with terms and conditions and if you donâ??t know the motivation of the seller, you donâ??t know if the seller will work compromises with you in doing the deal.

Call me and Iâ??ll go over with you how to work the seller (or structure the deal) so you can call him and work the deal. Keep in mind, that before you offer anything to the seller, you need to know his situation or motivation for selling.

Ed Garcia

and your question is…??? - Posted by Jimmy

Posted by Jimmy on September 29, 2007 at 06:11:37:

those are good midwest numbers. your gross rents run 28% of acquisition price. When I run into pricing like this, there is almost always immediate work required. make sure you inspect closely.

and find out about owner-paid utilities, yard care, etc. These directly hit your bottom line.