How to approach multifamily owners who own free and clear?

[Daniel Dietz]

Hello All,

All of the properties that I currently own are inside of LLCs with 2 other partners. Some singles, some duplexs and a 4 plex. I would like to buy something on my own also for various reasons. 

Right now, we finance with a commercial lender and he has good rates but 'only a 10 year lock' with 20% down. I am having a bit of trouble qualifying for a 'conventional loan' due to DTI ratios even though I have great credit.

With that in mind, I am wondering what input you all may have as far as how to approach current property owners that I have identified who own 2-8 unit building that are; getting older and nearer retirement, who are likely to either have their place paid for or very high equity, and who have 'self managed'. The ones I have in mind own well taken care of buildings and stable tenant base.

I guess what do you find typically they are looking for if they are in the mood to sell? Out of the 'work' of tenant management and taking care of day-to-day? Large chunk of cash for ______ ? A steady return that is higher than what they could get in the bank by seller financing?

Thanks, Dan Dietz