For sale by owner - 3 Family

[Erik Schubert]

I received a lead on a 3 family residence. It is for sale but not on the market.

The owner and I are slated to talk, in about a half hour form now. 7:45 eastern time.

I do not have any experience approaching this type of situation. What kind of questions should I be asking?

I am specifically looking for advise on what to talk about with the owner. This is the first communication.

The facts

I've walked the grounds. All seems ok. Not bad or great, just ok.

The owner is an absentee landlord

They were not successful in having the property managed by others

All the tenants were evicted or moved out three months ago.

[Owen Dashner]

1. Tell me about the property (how long have you had it, etc.)
2. Why are you looking to sell?
3. What is your goal with the property (how can you provide a solution to his problem/situation)?
4. After you've talked for while, ask, "what do you think the property is worth?"
5. How did you arrive at that number?
6. What did the units rent for?
7. Are they a conversion, or built for the purpose?
8. Are the units separately metered?
9. What are your operating expenses?
10. Why didn't the property manager work out (and who was the PM company)?
11. When was the last roof/hvac/plumbing/electrical updates?
12. Other deferred maintenance?
13. Any foundation issues and/or water intrusion?
14. Is the property in a flood zone?
15. If I offered you cash with no contingencies and a quick closing, what is the best price you can offer me?

And so on. It's easier to just go with the flow of the conversation and ask questions accordingly. Some people will answer all of your questions with no prompting, others will require waterboarding before they will give any info.

Remember, the seller is probably even more nervous than you are, so don't sweat it too much. Above all else, just be yourself and you will come across much more genuine than if you are trying to memorize a script. Don't worry about forgetting to ask something, just make sure to get the seller's phone and email address and you can always follow up later.

Good luck!