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Updated over 9 years ago on . Most recent reply
Questions to ask when smells too good to be true
So i found this listing in Loopnet for an office building at $1.2mil w/ a 26% cap rate.
It's in a pretty good area and 100% leased up.
Talked to the agent and he said it's closing tomorrow; final price $1.05mil and stated the cap rate is accurate (of course I did not believe it so I flat out asked if accurate).
Besides a pro forma; what other docs could I get to substanitate the agent/sellers claims on the cap rate? Seller tax returns?
Just want to know what I need to be on the look out for as this deal seemed too good to be true and a no brainer.
I am new and can post the link to the property which just closed; but, need to go back and re-read the T&C of this site. If I cannot and want me to send you the property in a PM i will.
Thx.
Most Popular Reply
A crappy property that can ONLY command 3.8 times the NOI is NOT gonna make you money! At a more realistic 10% cap rate they would have put about $2,730,000 in their pocket instead of the measly $1.05m.