buying off MLS, multifamily home prices

[Ronald Erwin]

hello everyone! I have bin seeing alot of multifamily homes that are priced according to the market in the area, makes sense, but they say the property is cash flowing. I can see how it is for them but at the current price and rental rates I would be a negatively cash flowing property. if I offer 30% below the market to get the property to cash flow it, would you think people would actually expect? my realtor is awesome he said its just business and explain that to the sellers the worst they can say is no and to just move on would you agree

[James Wise]

Originally posted by @Ronald Erwin:

hello everyone! I have bin seeing alot of multifamily homes that are priced according to the market in the area, makes sense, but they say the property is cash flowing. I can see how it is for them but at the current price and rental rates I would be a negatively cash flowing property. if I offer 30% below the market to get the property to cash flow it, would you think people would actually expect? my realtor is awesome he said its just business and explain that to the sellers the worst they can say is no and to just move on would you agree

 It's all subjective my man. If you had a dollar & I offered you $.75 for it would you accept? Under normal circumstances of course not. However let's flip the script a bit. Let's say you where starving to death & all you had was a dollar. The only food for 100 miles was inside of a vending machine that only took quarters. All of the food in the vending machine was $.75. If I offered you $.75 for your dollar would you accept then?

That's how it works in Real Estate. If you've got a distressed seller situation who needs to close on a deal & their options are limited you may be able to score yourself a property under it's true market value. Doesn't happen often though. How often are you starving to death with only a dollar in your pocket over 100 miles away from anything other then a vending machine?

Remember that even though a seller may be in a distressed situation their options aren't always limited to just you. You need to be competitive to close deals. Same vending machine situation. Only now let's say there was a 2nd guy in the equation & he offered you $.75 for your dollar as well as a ride to the next town if you did the deal with him instead of me. Would you accept my offer then? Same thing in Real Estate.