bowlingthunder 0 Report post Posted June 7, 2013 Hi, everyone. I'm brand new here...actually waiting on my naked investor manual to arrive Saturday! I have zero real estate investing experience, but am encouraged by all that I have read in this forum. It's so nice to see so many people sharing their knowledge! Having said that, I hope you will help me with a quick questionthat I have floating around in me noggin. I'm sure it's basic to most, but any help would assist me as I keep on reading. Thanks! I've read a lot of posts about giving rent credits to tenant/buyers. It sounds like a great incentive for the buyer, but do we ever negotiate rent credits on our own behalf with the seller? If we enter an SLO for an extended period of time, asking for a couple hundred a month could end up being several thousand dollars on the back end. It just seems that that would help counter any rent credit that we extend to the tenant/buyer. Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted June 7, 2013 I've had sellers volunteer rent credit, I don't usually ask for any... It all comes down to how much do they need to walk away with really, I let them know that from the get-go. Seller rent credits or a lower purchase price, same difference. Start with the sellers best purchase price (what they walk away with) and work your way up to what the market will support Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 7, 2013 Hi, Marc, and welcome aboard! There are several approaches you can take with rent credits. Personally, I stopped asking for rent credits between myself and the homeowner when doing a sandwich lease. I found that the concept of rent credits was a difficult one for most of them to grasp. No matter what I said or how I explained them, they seemed to think they were giving me their money. Rent credits were just one more number for the homeowner to chew on and become confused over. It became a deal killer on more than one occasion. So now I don't even ask for them. Instead, I'll just negotiate the lowest purchase price for the longest time frame that I can and be done with it. More times than not the bottom line was less than if they had accepted the rent credits in the first place. Share this post Link to post Share on other sites
bowlingthunder 0 Report post Posted June 7, 2013 Thank you so much, Chris and Michael! That really helped. I guess what I was searching for was whether or not the price we negotiate with the seller stays at that price though the completion of the deal or if it is reduced as we pay monthly rent. Even if it isn't reduced, at first thought it looks like we could use that to our advantage during the negotiation by pointing out to the seller that they will enjoy a reduced mortgage balance, retained tax benefits, and probably a small monthly cash flow by doing a lease with us. Thanks again! I love this forum!!! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 7, 2013 You're welcome. Keeping your offer simple and concise is definitely a plus. We've all heard the saying, "A confused mind always says no." So if you can negotiate a good price and avoid the talk of rent credits, I think you'll find that path an easier one. Share this post Link to post Share on other sites
bowlingthunder 0 Report post Posted June 7, 2013 That makes perfect sense. Share this post Link to post Share on other sites
