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Updated almost 5 years ago on . Most recent reply

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Jessica Grimm
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Order of operations for multifamily purchase

Jessica Grimm
Posted

We have about 15 SFH properties that we've acquired over the years but we've not delved into multifamily. We are looking at a 11 unit apartment complex. I need the rental agreements, etc to run numbers more accurately. We do not currently have a buyers agent.
What is the order of operations? Should I get a buyers agent and then have them contact the seller's agent to get this information? Or not worry about getting a buyers agent?  
Then how should I tie up the property while we're running numbers to determine an offer price? From the examples of  Letter of Intent I see, it seems that we should identify an offer price in the letter of intent. 

Thanks all!!

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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
Replied

A good buyers agent that specializes in multi family would be an excellent choice. First step is to request all financials for the property to make sure you understand the income and expenses and can formulate an intelligent offer. You can run all your assumptions and documents by your lender once you decide the deal could work. A good PM will help you scrub the deal as well. Once you decide to move forward and what price works for you you make the offer With a due diligence and inspection period appropriate for your market 45-60days and 30-45 days to close after that.

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