Please help w/ strategy...offer on 4 unit - Posted by Alicia Stl

Posted by Jason Cottier on February 25, 1999 at 17:52:18:

  1. Hire an independant appraiser to work for you not the seller and make him “painfully aware” of the “poor” overall condition of the units. May cost you a couple hundred dollars, but if your serious in acquiring this property it is a powerfull tool.,

  2. Get a contractor to give you an estimate of repairs. Even cosmetic costs money. Present this to the owner to demonstrate the “need” for a lower price to be reasonable. Your repair bill should reflect generosity on your part. ie: repair bill + offer = more than List Price.

Does this help? Let me know how it works. If you need a good “revenue broker” in your area, let me know and I’ll give you a good referral.

Jason

Please help w/ strategy…offer on 4 unit - Posted by Alicia Stl

Posted by Alicia Stl on February 25, 1999 at 09:35:16:

Hello,
Any experienced mutli-unit buyers/managers, I appreciate your help here…

  • 4 units, 1 plus bedrooms, brick, selling AS IS
  • on market for over 100 days
  • vacant for 6 plus months, it’s a burnt out landlord
    who lives WAY outside the city
  • comps on similar buildings in good condition – 60Kish
  • Repair costs estimated @ $11 K (includes tearing down
    the 5 car leaning brick garage w/ gaping holes in roof)
    Overall, the units are in good condition, needs mostly
    "heavy" aesthetic work, has decent appliances…great
    location
  • Rents could go for $360 to $390
    He’s clearly asking too much @ $49K… I’m using an agent
    since I’m new at this, but he’s not inspiring confidence
    as a strong negotiator (surprise surprise)
    I think $28 K TOPS…any tips on negotiating?
    I am confident about securing financing, w/ a good
    LT POTENTIAL Value investor…
    THANKS for your input
    Alicia