Multi-family - questions on LOI
Hi bigger pockets family,
I am working on my FIRST 35 unit multi-family LOI. Yey :-)
Can you please help with the following questions.
How many days - Buyer’s Inspection and Due Diligence - take ?
The lender is saying 6 weeks for closing - is that sufficient ? Should I ask for 8 weeks just in case ? Or would 8 weeks impact my offer negatively ?
Can I get a underwriting template?
Most Popular Reply
I'm concerned you are in over your head.
How do you submit an LOI if you don't have the tools to underwrite the deal? You should already be an expert with your underwriting spreadsheet. Ideally you've already had some practice with it underwriting deals so you understand sensitivities and what affects cash flow vs equity gain.
If you don't know how to underwrite the deal, you have no idea what the property is worth. Assuming the seller is reasonably sophisticated, odds are good one of two things will happen. You will either submit an offer too low and not have your offer accepted or you will pay way to much and have your offer accepted, only to find later that you made a huge mistake. You might want to take a step back and get some help.
The time to close is typically 30 days due diligence and 30 days to close. (I've never seen anyone use "weeks".) Timing can vary based on a variety of factors. To be competitive faster is better, but you had best know what you are doing if you pull ahead timing. Most deals have contingency clauses for extending closing, as needed.