Questions to ask a commercial seller

[Michael Spangler]

I found a great multi-family deal (four quadplexes that meet the 2% rule) and after some research, they could cashflow over $200/door easily. What questions should I ask the seller? The property is held by an investment company that promises return in 2-5 years, and they have held this for 4. I am reasonably sure they are selling in order to meet their fund objectives not because they need work, even though this is a amazing buy and hold property. Any help?

[Michael Dang]

If it's been on the market during a very very good market recently, I question why it didn't sell.  Were the sellers just listing it out there with no intention of selling?  Are they asking too much?

Why is this submarket a slow market?  High crime? Bad schools? Flood zone? No traffic? No amenities?  Are the neighboring properties well kept?  Bad tenant profile in the submarket?

Some questions in today's market not all for seller:

What were March and April collections?  What are the sellers expectations for May collections?

How many tenants incomes have been affected by COVID-19?

Can you obtain commercial financing in today's market?

What is your exit strategy?  If they could not sell it in a very very good market, what tactics will you implement to make this property sell quickly?

Will a property management company take this property over?