Posted by Ryan on October 08, 2003 at 09:03:10:
You have not given any figures so I can not give advice on whether this is a good deal but I can give you some general advice.
The first thing I would do is determine what sort of profit margin you are looking to get from each property. Remember to do a full analysis including expenses, taxes, occupancy. Once you have determined what short of profit margin you want that would make the deal attractive to you then you have somewhere to work from. Determine what price, interest rate, and amortization you could offer for each property and meet your requirements for a successful deal. I usually then offer slightly below that and see his response. He may accept right on the spot or counter offer. If he counter offers determine if his counter offer is reasonable and work off of that. Good luck.