Originally posted by @Brian Hughes:
I'm thinking of making an unsolicited offer on a 5+ unit multifamily property in Burien, WA. Its about the right size / type / condition for the property I would like to find to upgrade from the duplex I sold in 2019, and from my research, it is likely that the ownership are getting to the point in their tenure where selling might be on their minds.
Given the building's likely income/expense numbers (I own a nearby, similar style/quality property I can extrapolate from) I can make an educated guess to its value and given that value range I can afford it without excess leverage. I'm already working on the commercial loan pre-approval, and I have an attorney identified I would work with to prepare / review contracts. And, I've purchased RE several times (with an agent) so I know the general process; I just haven't gone it alone on buying. (I did sell the Duplex off-market - but there the buyers did most of the work and I basically just had the attorney review everything)
Before I approach the ownership, I'd like the chance though to talk with somebody who has gone through this process for small commercial scale multifamily properties (5-12 units) on their own. What worked well, what professionals helped you, what were pitfalls, what did you miss, what would you do differently, etc.
Thanks for any thoughts. Dinner is on me if we meet in person.
I’ve purchased (5) 5-11 units off market in Everett where I dealt directly with seller. Granted those 5 buildings were from only 2 different sellers and I am a licensed broker myself. I’ve tried with numerous other owners and have found it very hard to find “motivated” sellers off-market in this arena. There is very little room for negotiation as the seller usually knows the price they want.
It may be worth getting a broker involved to make sure all your bases are covered and offer a layer of negotiation. If not a broker definitely get a lawyer.
We purchased a place where no brokers or lawyers were involved And the paperwork was butchered. There was a deed from the early 80s that was never recorded rendering the property nearly unsalable. It took over 6 months and numerous different title companies to close the deal.
