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Updated almost 3 years ago, 02/23/2022
Approaching Multi-Family Offers with Limited Data
Hey BP - I'm hoping to get some feedback on a project I'm rolling out shortly.
I have a list of multi-family properties (16-120 units) in multiple cities that I'm interested in purchasing in North Carolina, Tennessee, and Texas.
I want to present the owners with a preliminary offer to them based on only Co-Star and public record data I have on-hand (also have Propstream and Reonomy). I have not spoken with these owners and do not have information on rents, operating costs, conditions, etc
The goal is to present a ballpark figure via direct mail to gauge interest, initiate conversations, reduce tire-kicking, and have more productive conversations.
What is the best way to approach presenting a preliminary offer to a multi-family property owner before having spoken to them?
Some ideas I had were:
- Finding cost/door data for recent sales for each city
- Assuming NOI based on market rent data
Obviously each of these methods has limitations, but I'm curious on everyone's thoughts on the most accurate way to get a ballpark offer price, based on limited amount of information.
Any thoughts or ideas would be appreciated!