Yes, You Should Start Lowballing Offers (Buyers in Control!) (Rookie Reply)
Summary
This BiggerPockets article discusses the potential for lowball offers in a cooling housing market, offering advice on navigating such offers and also providing advice for new investors partnering to start an STR. Hosts can use this information to inform their real estate investing strategies and understand the risks associated with certain financing options.
Key Insights
- •The 2025 housing market is cooling, which may present opportunities to make lower offers on properties. Properties that have been on the market for an extended period are prime targets.
- •Buying a multifamily home with a friend where one unit is the primary residence and the other is a short-term rental has legal complexities with obtaining financing. A lender will want to know where the down payment is coming from, and gifts of money for the downpayment may be limited to family members.
Action Items
- ✓If lowballing, do a verbal offer first to save time on contracts. Have an agent who is comfortable with submitting lowball offers, as this is a common strategy in a buyer's market.Effort: lowImpact: medium
- ✓Shop around and talk to multiple lenders. Explain your financial situation to see what loan products may be available to you.Effort: lowImpact: medium
Tools & Resources
- →BiggerPockets Lender Finder: Go to biggerpockets.com/lender finder to get yourself connected with a lender, especially an investor friendly lender(biggerpockets.com/lender finder)
Common Mistakes
- ⚠Buying a primary residence under an LLC is not allowed.
- ⚠Avoid insulting the seller. This can cause your initial offer to be rejected based on the negative interactions with the seller.
More from Getting Started
This article from Florida Weekly discusses short-term rentals, highlighting their potential for high returns. It signals a positive outlook for the STR market in Florida, suggesting that focusing on the state can prove financially beneficial for hosts. The article suggests that further research into specific Florida markets might be worthwhile.
This article discusses real estate market trends in Mexico, specifically focusing on how they affect expats. The key finding is about the potential opportunities for expats. It also touches upon factors like real estate trends. This can provide valuable insights for potential investors in the Mexican real estate market.
This article, from Florida Weekly, discusses short-term rentals and their potential for big returns. While the provided text is limited, the title suggests a focus on the profitability of STRs in the Florida market. Further information from the full article would reveal insights for potential investors and current hosts.
Curated by Learn STR by GoStudioM