Creative tactics to get sellers to sell

[Josh Shneyderov]

I just submitted an offer on my first Multi-family property, a tri-plex with renters in place.  The deal works, but is not a big $$ maker.  I'm trying to come up in price and one creative way I'm trying to get myself comfortable with a higher offer is to try to make sure I"m covered from losses due to vacancy.  Currently, I'm using 8% vacancy on the property in my analysis.  If the tenants (who have been living there for years and are currently M/M) stay obviously the 8% vacancy expense is gone and the deal makes way more sense.  I'm kicking around the idea to ask the seller to sign an agreement saying that if any of the units become vacant in the next 12 months they make me whole by being on the hook for just 1 month of rent per unit, just as a way to make myself more comfortable with the deal.  Obviously, this benefits me more than the seller, but I'm curious what other people think of this unique idea.  Has anybody used anything like this before?  Do you have any other similar tactics?

[Greg Dickerson]

@Josh Shneyderov I have sold vacation rental properties and other properties with rent guarantees. That’s a tactic I have used to get a higher price.

You would need a motivated seller to agree to that or offer above market.  If it’s a competitive market and there are multiple offers you’re not likely to be able to get a rent guarantee