Making An Offer On A Property

[Craig S.]

Hi Guys, I am preparing to make an offer on another investment property (duplex). Do you think it would help or hurt my negotiating power if I disclosed my math on how I came up with my offer? For example, My personal goal is to shoot for $200 per month in cashflow per unit, and I also factor in property management in as an expense, even though I self-manage. If I disclosed my spreadsheet on how I came up with my valuation/offer, showing my $200 per door cashflow goal, do you think this would hurt my offer and negotiating ability? I am concerned the seller may think that $200 per month per door cashflow after all expenses is too high of a goal. Or they may think that my estimate for property management or other expenses are "too high" and not be willing to come down on the selling price because of my "unreasonable numbers". What do you guys think? Do you think I'd be better off using other negotiation tactics, like comparable properties and such, rather than disclosing my actual math on how I came up with my value? I always like the element of the "unknown" when negotiating, and if I disclosed all of my numbers I'm afraid I may not have any leverage to argue against. Thanks, Craig

[Account Closed]

Why should a seller care about any of that? He will sell to the highest qualified buyer he can find. If thats you , thats you. If someone else pays 20% more, why should he care about your cash flow goals?