Comments on: Negotiating The Offer - First Development http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/ Actual real estate investing and development projects, including methods, lessons learned and profits! Fri, 21 Nov 2008 16:07:38 +0000 http://wordpress.org/?v=2.3.3 By: Fritz Fuentes http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/#comment-1856 Fritz Fuentes Thu, 13 Nov 2008 00:49:05 +0000 http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/#comment-1856 g638i1566h93iyh9 g638i1566h93iyh9

]]> By: Terry http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/#comment-1420 Terry Tue, 01 Jul 2008 18:48:15 +0000 http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/#comment-1420 Tim, Appreciate the comments and hope you come back. I will be starting on my second development storyline shortly. To answer your questions: The offer was cash to us. The buyer took out a $1 million mortgage with a bank and paid the balance in cash. This was done just prior to the bubble and we didn't have a problem with the comps, although at the time all were adjusted up for various factors. Since then, there have been a couple of bigger speculative deals done. The appraised value was quite a bit higher than the selling price despite not needing that high of an appraisal to make the mortgage work. The offering party was represented by a broker. Tim,

Appreciate the comments and hope you come back. I will be starting on my second development storyline shortly. To answer your questions:

The offer was cash to us. The buyer took out a $1 million mortgage with a bank and paid the balance in cash.

This was done just prior to the bubble and we didn’t have a problem with the comps, although at the time all were adjusted up for various factors. Since then, there have been a couple of bigger speculative deals done. The appraised value was quite a bit higher than the selling price despite not needing that high of an appraisal to make the mortgage work.

The offering party was represented by a broker.

]]> By: Tim http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/#comment-1414 Tim Sat, 28 Jun 2008 17:38:16 +0000 http://myactualprofits.com/wordpress/2008/06/27/negotiating-the-offer/#comment-1414 Just stumbled across your blog. You're to be commended for your openness and honesty. Not only that, but the style and prose are easy to read and the story is truly interesting. As a broker who negotiates at this level on most of our deals, you hit the number that logically would have been reached given their starting offer. The questions I have are : is it cash? if not, will you be able to comp the property, since it's the biggest sale on the lake and given the nature of today's market? And was the offering party represented by a broker? Just curious. Just stumbled across your blog. You’re to be commended for your openness and honesty. Not only that, but the style and prose are easy to read and the story is truly interesting.

As a broker who negotiates at this level on most of our deals, you hit the number that logically would have been reached given their starting offer. The questions I have are : is it cash? if not, will you be able to comp the property, since it’s the biggest sale on the lake and given the nature of today’s market?

And was the offering party represented by a broker? Just curious.

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