A Good Deal? - Posted by Greg Barkman

Posted by Lloyd W. on October 25, 2003 at 22:58:40:

Just my opinion… but if you have to ask that question you should NOT buy. Find a commercial real estate agent who specializes in apartments. Hire him/her as your buyer broker. A property like this can kill you if you don’t know what you are doing.

A Good Deal? - Posted by Greg Barkman

Posted by Greg Barkman on October 25, 2003 at 18:46:27:

Friday I found a 70 unit apartment complex 4sale in Greenville NC. The owner is asking 1.5m and is willing to owner finance 40%-600k. He payed 1.87 mil for it 10 years ago.The apartments where built 12 years ago. Gross rents are 23k per month, but the units are only 60% rented at this time-13.5k. He switched management companies 2 months ago when he had only 50% of his units rented. I have checked with other management companies in the area and they say that they are not having the same problems with such high vacancy. He also own hotels and says he has had all he can take of apartments and wants to sell within 14 days. I told him I needed more time to consider the deal, but he says I must give him answer by 5:00 Monday or he will sell to someone else who has offered him 1.4m. Is this deal worth it, or should I leave it?

Re: A Good Deal? - Posted by Dimpil

Posted by Dimpil on October 26, 2003 at 07:02:46:

On top of what Llyod said, why is he pressuring you? I just don’t like it when someone trys to force me do make a quick desision and I when I do it’s usally a bad decision so I don’t make them any more.

You have to investigate this opportunity more espically if you not an apartment person. And I doubt he can sell in 14 days. Commerical Lending is longer then SFR and ofcourse dealing with the lender (broker or bank) will take about a month if you do not have the expereince. Heck the appraisal may take 10 days to come back. What about the inspection? Even if it’s 12 years old who says it doesn’t have issues?

Bottom line, you need time to really make a decison to work the details and make sure you are going to come out ahead.