Difficulty in doing large deals
Over the years our company has been slowing growing. Today we are up to around 175 apartments of various varieties and subgroups.
In acquiring these locations, what I consider, standard negotiating practices happened. Particularly the idea when I come to you, I offer the first
price and when someone comes to me they offer the first price.
Currently we are wanting to make a big leap and buy a 100-200 unit complex or something akin in magnitude.
It seems we have gone from being a big fish in a small pond to a tiny fish in a big pond and we are having a hard time navigating.
Recently what seems like the perfect property for our model became available and was listed on one of the major national listing companies.
When asking for the specifics for the listing they provide EVERYTHING even the cap rate?!?! (which i never trust from an agent btw :) ) except the asking price.This seems to be the case for many of the properties of this magnitude. I try to only swing on great pitches and would have needed to spend 40-100 hours analyzing such a deal and I have no heart to invest that amount of time just to find out the seller is asking an impossible number which seems to be the case 90% of the time. I decline to respond and the agent (which seems like a 19 year old) calls me up asking for an offer, I tell him I saw no price listed so I didn't investigate. He then tells me many people are getting ready to make offers and tries to get me to scramble to make an offer before it gets away.
Or in other words it seems listings of this magnitude have, some would say, "skilled" sales people engaging in tactics that skilled salesmen would do, and in so doing takes all the opportunity out of transaction for me.
I could just give up in dealing with large firms, but I would prefer to adjust to the new environment and hopefully thrive.
Could anyone who has reached such a fork in the road give me any pro tips on how to navigate this larger pond?
Thanks in advance!