Get Ready To Pounce!

About two months ago I started saying that winter was going to be a great time to pick up good investment property here in the Johnson County, Kansas area. And I like it when a plan comes together.

Over the last two months inventories have swelled from about 42 multi-family housing units for sale in Johnson County to today’s number of 72 multi-family housing units for sale. Many/most have starting prices too high and that is to be expected.

Realty is quickly setting in on many of these sellers. They are trying to sell at premium prices, above and beyond what was reasonable even 18 months ago. How do I know? Because their rent to purchase price ratios are out of whack. Numbers don’t lie. I know I can show each of these sellers the past three years of pricing trends and get them down.

Most of these investors own these properties and know the real numbers anyway, even if their REALTORs don’t. I just need to start picking and choosing.

2 Comments

Filed under Real Estate Investing

2 responses to “Get Ready To Pounce!

  1. jeff Brown

    I’d love to be a fly on the wall while you’re ripping the curtain away from a seller’s fantasy. 🙂

    When, in the past, I’ve come up against a seller, represented by their own agent, fun becomes the code word of the day.

    My favorite question? Would you buy these units today from yourself at these rents at this price?

    The look of utter frustration usually tells all.

    Sounds to me like there’s a tremendous service you can perform. The expired listings are waiting to hear from an expert like yourself, as it’s patently obvious they’ve not dealt with one before. 🙂

  2. Chris Lengquist

    Thank you for the kinds words and faith in my ability.

    When I present the offer I do so to the Seller whenever possible. I simply work the math showing how we got to that number. Usually, the listing agent is angry with me while the investor/seller has a look of resignation.

    Like I said, he/she knows what the real value is. But they aren’t going to argue with their agents higher price if they think it MIGHT happen.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s