No accepted offers yet.

No accepted offers yet.

My friend/advisor with more experience says I am being a cheap knucklehead and that the $20k is not relative when you factor the forced appreciation and income/valuation of the improved asset(proforma), but, I think it is math and $20k is always relative and I have my criteria(4.5cap) and was very transparent about it from when I first submitted the original accepted offer, and my DD uncovered several hidden deficiencies that make the credit necessary to maintain my original underwriting numbers and even though I understand my friends rationale, I don't want to give in any more slack(adjusted to 4.4cap), than I already have...What do you experienced multi family acquisition people think?

; what's the condition of the properties; what's his timeline for selling; and what's the least amount he'd accept.

If you accepted and signed to sell to another party then that party could sue you, but even that is very unlikely.Don't worry about backing out.

Use the Fix & Flip calculator and see where you need to be in terms of a max price to pay and if that number is not acceptable to the seller, find the next deal. 

I would propose a better way of evaluating real estate and that is to take the difference between the CAP rate and prevailing interest rate and use that to evaluate whether something is a deal or not.D = CAP - %APRThis would allow you to calculate the spread which is directly related to your debt assisted profitability (like a cash on cash return).You can vary what “D” you will accept based on the normal factors you would consider when thinking of the CAP rate (location, building type, number of units, financing, deferred maintenance, etc).You could also rearrange the equation to calculate the CAP to search for opportunities and how to offer for property:CAP = D + %APRIn this case, you can actually figure out the CAP by knowing the “D” you want to get for a given location, building type, etc and understanding the financing available to you and other investors for the opportunity.Any reason this is an inferior approach to CAP rate or cash on cash return?

I recently started my journey as a real estate agent and I have a closed deal under my belt along with two accepted contracts soon to be closed as well.

They can either accept one of these rates or decide to go elsewhere.

@Adam FeickCongrats on the accepted offer!