Contacting Seller of Large Multifamily

[Darrell D.]

I went to the bank yesterday to discuss a $1M loan for a multifamily unit.  I'm planning on pulling the equity from two of my houses for the down payment.  I'm very pleased that the bank is listening!

I have not contacted the seller yet for the specifics.  I'd like to talk with the seller directly if possible.  I don't want to have an agent speak for me.  While I'm not a real estate agent, in most cases I know what I'm taking about and feel I can communicate better, and without delay.  In addition, $60K is a lot of money in any transaction.

Is there anyone who prefers do deal without an agent?  If so, how did you complete the transaction?

Thank you

[Bill Tyler]

How did you find the property? Was it listed on MLS or Loopnet? You should be able to find property information on your County appraisal website. Usually that will include the ownership information, tax appraisal values, etc. I like to use that number as a basis for property worth - but always understand that is not a number that should be written in stone.

Go back to the complex and talk to some of the residents.  I usually will go by with a friend (both of us dressed in business casual) and just chat with the residents.  Let them know that you're interested in possibly buying the property.  Ask them what they like about living there, what they don't like, etc. Also ask about the current owners and property managers - do they make repairs quickly and correctly? They residents are also a good source for crime stats (along with the local police department websites), quality of life, etc. 

This technique worked really well for a friend that was looking to invest in a multi-family.  After we did this - we learned that between code violations, vandalism, and non-paying renters the property would have to be purchased at HALF of what they were asking.  It had multiple owners and property managers over a 24 month period and tenants were having their rent checks returned to them from former property managers (no on-site property management).   We ended up walking away from the deal.