Hello to all our BP Mentors,
My wife and I are looking for our next purchase (and have been for almost a year now). Our market Anchorage and South central AK has seen a real run-up in commercial (5+ units, which is what we are looking for) multi-family over the last year and a half, with asking prices getting totally out of line with actual values IMO.
So we are exploring options for marketing and acquisition. One of these was just simply "driving for dollars", which we did and do and it resulted in contact with an owner of an older 9 unit property which will need considerable rehab, but the (hypothetical) numbers look good to us. We've had a couple of contacts with the owner, he and his wife appear to own the property outright, appear interested, but are in no hurry to sell. At our last meeting, he left us with:
"I probably should sell you the property because I just don't have the time any more to take care of it the way I should. But right now I've got a lot of family coming to visit and I'd rather not deal with this till the end of the month."
So, now the month is over and we're going to follow up. Keep in mind we have only seen the property from the outside so we don't know the full extent of the scope of work required for what we want to do, but we did give him our opinion of the value of the property as we perceive it with limited information (mistake?).
Where would you go from here? What would you do? Or not do? What are the best strategies for converting a prospect into a deal?
Would love to hear from @Michael Q., (our new hero) as this seems right up your alley.
Thanks in advance, Scott & Velma
Good deals come from motivated sellers. This seller is clearly not motivated. The best you can do is treat him with respect and come across as sincere and honest, then continue to follow up at regular intervals. Hopefully when he is ready you will get the first call.
Thanks @Ned Carey ,
That was kind of my thinking at the moment.
Seller needs to be motivated, but sounds like you may be able to help him get motivated.
If the property is owned free and clear, you may want to offer up seller financing, that way he still makes money, but doesn't have to worry about managing the property.
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