All Forum Posts by: Matthew Lindsey

Hi,

So recently I had a seller interested in selling me their multifamily units. Total of 9 duplexes, 3 duplexes on 3 parcels of land. The property was not on the market, I contacted to them to see if they would be interested in selling some of the duplexes. They called me about 2 weeks after sending them the letter and gave me a price for all of them together. Anyways, I was trying to see if they had any wiggle room in price and in the mean time they talked with their tax accountant/financial advisor and informed me that they no longer were interested in selling them. Not knowing what to say since I was caught off guard by that after all the work and research I had put into trying to make the deal happened, I thanked them for their time and told them to keep my number if they changed their mind. So a week went by and I reached back out to just see if I were able to give them their asking price would they reconsider selling any or all of the units. They replied and told me they would sell the least desirable of the 3 duplexes but this time the price they gave me was more than the original asking price. If I was to buy these I would also want another 3 duplexes they own beside these.

My question is do yall have any tricks to give the seller a little push to sell? Like in my case I might would buy the ones they offered me last but I really want the other 3 duplexes right beside these as well. The 3 they offered me only have an easement to them and the easement is the property line of the 3 I want. Have you ever sent anyone a contract with a price ready for them to sign if they choose to. Should I send them a contract that has both properties for a certain price to show im serious, should I just stick to verbal, or should I just walk away. Any help would be appreciated. 

@Alan Ouellette

Thanks. Well unfortunately the whole deal fell apart today. They talked with their financial advisor today about maybe owner financing and somehow he supposedly convinced them not to sell anymore. Definitely a bummer! I wish I knew what he said to make them change their mind. The owners are in their late 80’s. He probably told them they could get more for them, who knows. Thanks everyone.

@Eric Vermilion

Thanks. It’s actually a property that I got a call back on from sending a letter to, to see if they would be interested in selling. So there is no agent. I’m not under contract on it yet because I’m not sure yet if I should be. I really wasn’t to prepared for them to offer all of their units to me, I was just hoping to get one of the parcels(3 duplexes). Without being under contract I’m sure the management company would not release any information to me. 

I guess I’m wondering if it’s worth putting under contract to actually really dig into all the numbers by contacting the management company, getting all the history, seeing what can be saved, etc..

@Monique Pett

The first report is using their numbers and having a mortgage on the property. I’m almost certain nothing is owed on the properties by them. They have had them for 20+years. I know the first report doesn’t make since to do. I just really am not sure if everyone uses their own numbers when evaluating a property, a mix of their and actual properties figures, or strictly what the properties are operating at right now. 

There is still a slight chance for a owner financing deal. They have not completely shut that down yet.

@Eric Vermilion

I have drove onto the properties but not walked through or around them. From the exterior they seem to be well kept up. They built 4 and have had all 9 for over 20 yrs. The parents owned them and now the kids have the say over them but they have a management company that watches over them. I’m pretty sure nothing is owed on them so the kids just approve all maintenance requests and hire it all out. 

I would attempt to get a longer term loan but I just threw 20 yrs in there because it seems like the more common commercial loan.

Hi, so I found a off market property that I need help analyzing. I think I have given it too much thought and have mixed feelings about it. It’s basically 3 properties that contains 3 duplexes each for a total of 9 duplexes. I was given an initial maintenance figure and I feel like it should not be as high as the number they gave me. The amount I was told equals 26% of gross income and that’s only maintenance. The units were built in 1998 and 6 out of the 9 are all brick. I feel like this is a management issue or a few bad tenants. I’ve ran reports with their numbers and mine and it doesn’t work with their numbers. Would y’all walk away from this property or go off what you believe it could/should be? They may be trying to maximize their tax deductions. I hope these links to the reports work. (I haven’t tried yet to talk them down on price) From what I have seen there should be at least 25% equity in the property at their asking price. 
https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

@Bjorn Ahlblad

@Greg M.

@Lee Ripma

Thank you for your opinions. I can see positives and negatives to both. I just wasn’t sure what other investors thought about them. 

Hi,

I was wanting some opinions. What would be more desirable to you and why, 3 duplexes on one parcel of land or 6 units in one building on one parcel of land? I’m looking into buying 9 duplexes. There are 3 duplexes to each parcel of land. The duplexes and land can not be rezoned or ever broke apart and sold separately. They are grandfathered in. I’m just wondering if I would have trouble selling the deal down the road to other investors. I appreciate any input. Thanks

@Nick Belsky

Wow! Thanks for that information. That is helpful. To be honest I didn’t realize you could get a fixed 30yr commercial type loan. How much down are they having to pay? Are those type of terms and rates possible without a blanket type loan by doing them individually? Thanks again