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Updated over 3 years ago on . Most recent reply

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Israel Flores
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Agents/Owners Not Providing Cap Rate/Financials

Israel Flores
Posted
Hello! First post here, I have been a RE Agent for 10years but just now getting into multifamily and light commercial. I am currently helping a client find & purchase a 2-4plex, but I am finding many owners/agents not providing financials, rent rolls, or info needed to determine a cap rate even after asking. Is this normal? 
Wondering how my client can make an informed decision without some of this info or do we just pass on those properties? 
Any insight would be appreciated!

TIA! - Israel

Most Popular Reply

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3,125
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Matt Devincenzo
  • Investor
  • Clairemont, CA
2,637
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3,125
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Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied

Two to four unit are 'residential sales' where cap/seller financials aren't very important. They're valued by comps not cap rate, and rents are pretty consistent and easily increased by a buyer. I wouldn't even bother with what was provided since I only care about what I calculate as a reasonable amount based on my market knowledge. Even if say rent was 50% of market, that wouldn't justify a 50% reduction in my offer...I know what it should be and since it's just a couple units I can get it there within 2-3 months (assuming lease dates allow). 

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