Justifying low offer on three unit multifamily

[Chris Purcell]

I'm looking to buy a 3 unit multifamily property in Baltimore. The problem is the seller, in my opinion, is asking way too much for it. I want to put an offer in but I don't want to scare them off by offending them or not taking me seriously. 

So of course I need to justify my offer. I need to prove to the seller that no one is going to make any money paying what they want. My question is how do I do this? How detailed of an income and expense estimate should I provide? What kind of explanation should I include with my offer?

[Paul Choate]

I regularly make offers that are significantly lower than the asking price. I often ask for seller financing. I also regularly get them accepted (about 10-20%). Sometimes it talks a few weeks or months. 

I always put an explanation as to how I came up with my offer. All of the properties I offer on are fixers. Most sellers I deal with are not professionals and do not understand what they have. They need to be educated as to the reality of their situation. I approach it as if we were partners in the deal. I always include my profit and have not had as single person object to the amount. I generally do not get into real estate terms they would not know. I just stick with the very basics they are familiar with. You can tailor this approach depending on the sophistication of your seller.

I don't know if this would work much for stabilized properties or off the MLS but it works for me.