12 Questions Asked on Real Buyer-Seller Call for a $20MM Apt. Building

In my conversation with fellow multifamily syndicator @John Cohen, who is in the process of closing on a 240-unit apartment building for over $20 million, he provided a list of questions that you should be prepared to answer during the best and final buyer-seller call.

The objective of the best and final buyer-seller call is to provide the seller with information about your business plan that convinces them to award you with the deal. Therefore, the more prepared you are to answer the seller questions, the more appreciative, comfortable, and trusting the seller will be, and the better chance you have of being awarded the deal.

Here are a list of questions that John was actually asked and prepared to answer during his best and final buyer-seller call, which resulted in him getting a 240-unit apartment complex under contract for over $20 million.

Main Questions

1. Who you are?

2. What do you own in the area?

3. Who is your manager?

4. What is your business plan?

• What is your budget breakdown?
• What is your detailed plan?
• What opportunity do you see here?

5. What are you attempting to deliver?

• How long do you plan on holding the property?
• What is your financing?
  • How will you be securing debt?
  • What did you underwrite?
  • What type of loan?
  • What is the LTV?
  • What is the rate?
  • Can I see your term sheet?
• What is your renovation plan?
  • Estimated budget?
  • Rehab plan?
    • Interior?
    • Exterior?
    • Common area?

Additional Questions

6. Tell me about your team?

7. Tell me about the investors?

8. Do you have an approval process?

9. Is your equity ready?

10. Have you toured the property?

11. Has the equity toured the property?

12. Is any surprise going to come up?

Bonus: Three Questions to ask the seller

1. Why are you selling?

2. Is there any reason why we would not be awarded the deal?

3. What else do you own? – See if there are other investment opportunities

John is a firm believer in putting all of the cards on the table and coming prepared. The seller will appreciate that and you will gain their trust due to your proactive transparency.

What other questions have you been asked on a best and final buyer-seller call?