Hello,

I have some potential off market single families that a seller wants to sell.  One is 3/1 and the other is 2/2.  The 3/1 there are 6 tenants living month to month and the 2/2 there are 9 months left on lease.  Seller refuses to let me see interior and states he doesn't want to bother tenants.  Numbers make sense and would provide good cash flow with a reasonable offer that I believe seller would accept for both homes, but not letting me see inside makes alarm bells go off.  He also states he is renting each home at $1400/month.  He owns them free and clear.

Would you still make offer?

Thanks.

Carlos

Carlos, from my experience as a property manager and wholesaler he is hiding something. Ask him for the rent roll to prove that what he is saying is true. The issue could be that he doesn't have the rent roll documentation, or he the residents are delinquent. Have you drove by the area at all?

Yes, I did ask for rent roll.  He said he would mail it (he's not tech savvy and much older gentleman).  I don't think he will mail them.  I passed by the homes.  One of them had multiple cars parked out with gentlemen drinking outside.  The other home there was no one present.  Thanks.

@Carlos Garcia I definitely echo what @Joshua has just stated. If the seller is not willing to be transparent on the front end, that may indicate issues in the back end.

Originally posted by @Anny Garcia :

@Carlos Garcia I definitely echo what @Joshua has just stated. If the seller is not willing to be transparent on the front end, that may indicate issues in the back end.

 

Thanks Anna.  That's what I was thinking.

Best,

Carlos

Hi @Carlos Garcia ,

He could be hiding something, but it might be that he just doesn't want his tenants to know he is selling. Get that place under contract and he will know you are serious. I doubt even he presumes that a buyer would buy without knowing what it looks like inside. More likely he doesn't want the tenants knowing or want to waste his time without a contract. Put a contingency that you have to personally inspect and approve before paying earnest money and I'll bet you'll have a deal. Let me know how it goes.

Benjamin

Originally posted by @Benjamin Aaker :

Hi @Carlos Garcia,

He could be hiding something, but it might be that he just doesn't want his tenants to know he is selling. Get that place under contract and he will know you are serious. I doubt even he presumes that a buyer would buy without knowing what it looks like inside. More likely he doesn't want the tenants knowing or want to waste his time without a contract. Put a contingency that you have to personally inspect and approve before paying earnest money and I'll bet you'll have a deal. Let me know how it goes.

Benjamin

 Thanks Benjamin, that's a good perspective.

@Carlos Garcia I would still make the offer, but make it contingent on inspection or at least "review" of the interior

I was going to suggest what Jon Kelly just said.  Make it contingent on an inspection of the interior of the home.

First I would ask to see pictures if they have them. Then I would make the offer contingent on your inspections. Assume there will be a decent turnover for each and build those costs into your analysis. Then state your assumptions in your offer (I would write them down to point at if it looks worse than you thought). Then when you have them under contract, do your walkthroughs and if they are worse than you anticipated, ask for a discount.