Hello all, My name is Derek Dodd from Chehalis WA. Currently in the US Navy. My goals for real estate are to make 2 deals before the end of the year. Trying to make this happen i went to check out a deal and the owner is selling two properties. Both multifamily buildings. The problem I am having is how to structure my offer so that it does not offend them but still meets my bottom line. I would be offering a little more than half on each property. Any suggestions?
This is just my humble opinion.. So there’s lots of ways to try and do this. But ultimately you could still make the seller angry. Maybe try and have them give you a number that’s the lowest they will go. Then if you are still no where near the price you’re willing to pay then don’t throw out your number.. (it’s your only leverage in the deal. It will surely make them angry.) A sharp colleague of mine calls it a “soft pass”
Working towards their motivation is the key to understanding why the price is what it is. If they have none or you don’t understand what it is yet, it will be difficult to end up with a number in the kind of discount you are talking about.
Maybe offer on 1? 1 is better than none, right?... I wouldn't offer "little more than half" unless its been sitting for a very long time. even then you have to be ok with loosing the deal at those numbers.
I agree with Beau, you need to know their motivation. Have you done comps in the area? Do you know anything about why they are selling?
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