Strike Price for Multifamily Properties

[Alejandro Antonio Taylor JR]

Hey guys hope this reaches all of you well and you're all staying safe during these times. I am currently finalizing my business plan for my Multifamily real estate investment business I am planning with my Dad. We are planning on investing in large apartment buildings in Florida and Texas. One question I had is what is the best strike price you should look to offer a seller when purchasing a Multifamily property? I know the value of the property is the NOI divided by the cap rate. I figured it would be around that range. I have seen examples where buyers offer much less that that value and end up getting their offer accepted and closing on a deal. An example would be a buyer found the value of a property to be $5 million and he ended up offering $3.8 million and closing on the deal. Thanks in advance for any help guys. Best regards.

Tony