SSS #227: $1M Offers 💸


Tweet of the week:

Estate Plan Done

The tweet didn't perform well, but getting our estate plan done was the highlight of my week.

PSA: If you have children and/or a sizable amount of debt (mortgage), get a term life insurance policy from my friend's mom: Brigitte Bromberg. Tell her I sent you 🙏

Once the policy is written, hit up JP Dziuba to set up your estate plan.

Livin' La Vida Luna y Luca


Luna got a new bed. Luca uses it every chance he gets.

This is pretty much every morning.

$1M Offers 💸

I'm itching to find my next project.

So much so that I've made more offers in the first 6 weeks of 2024 than I probably made in all of 2023.

The competition is fierce (or dumb).

Here are a few of my rejections so far...

151 Center Ave

151 Center

151 Center sits on a 50x150 lot. That's the same size lot I had for Washington.

I bought Washington for $525K in late 2021. Seeing this house for sale at $825K was a real sticker shock.

I made an offer for $725K a few hours after the listing went while citing 24 N Summit (which sold for $725K) as my comp.

There was no counter.

A few days later I bumped my offer to $795K and the seller's agent seemed annoyed.

The home is under contract and the rumor is it went in the low $9's. ☠️

208 Southern BLVD

208 Southern BLVD

208 Southern BLVD is in the Rolling Hills section of Chatham. The house sits on a corner lot. Although it currently faces a double-yellow (Southern), there's an opportunity to turn the house towards Robert Dr (one of the most desirable streets in town).

I wasted no time here either. A few hours after the listing went live I put in an offer at $999,999.99 (to avoid the mansion tax) and included the following:

  • Cash
  • Close in 2 weeks
  • No Appraisal Contingency
  • Environmental (Tank Sweep) Only
  • Buyer pays:
    • Seller's Agent Commission (up to 2.5%)
    • Buyer's Agent Commission (up to 2.5%)
    • Seller's State Transfer Tax (up to 1%)
    • Seller's Attorney (up to $2,500)

My $1M offer was more like $1,062,500, but the seller would net more, and pay less in capital gains tax.

I found out a few days ago that I didn't get this one either.

17 Londonderry

17 Londonderry

I made the same offer here. $999,999.99, no contingencies except environmental and I'd pay the bulk of the seller's costs associated with the sale.

My agent said they received an offer for $1.3M, but ultimately ended up doing something unexpected.

*Tim Allen Voice*: HUHHHHHH!?!?!?

Left $300K on the table to do a solid for a friend??!! WILD. 🤯

Multiple More

Then there were a handful of other offers I made through other investors in hopes that we could do a JV.

  • 5 Briar Cliff in Livingston
  • 20 Cambridge in Livingston
  • 74 Chatham in Chatham (now listed as new construction)

Did I Make a Mistake?

I turned off my direct-to-seller marketing efforts at the end of 2023.

  • I canceled my Propstream subscription.
  • I canceled my CallPorter subscription.
  • I canceled my RESimpli CRM subscription.
  • To make it final: I handed over all of my leads to a local wholesaler.

While I don't regret turning off my marketing, I'm beginning to wonder if I'll be able to buy my next project off the MLS.

I'm going to stay the course for now:

  • Try to be the first offer on anything interesting
  • Continue expressing interest in Joint Venture opportunities
  • Follow up on offers made in the past that never ended up exchanging hands.