Jun 2, 2018
Having the highest offer price doesn’t always get you the deal.
The seller needs “execution certainty”. Can the BUYER actually
close on the proposed sales price? That’s the sellers worst fear
that a buyer cannot close or will re-trade the original terms of
the sale transaction. Yikes!!
The seller needs to pick the right buyer and take the RISK OUT. The seller doesn’t want to end up with egg on their face by failing to pick the right buyer.
But BEFORE a buyer is chosen, the seller needs to analyze and understand the strengths and weakness of every potential buyer.
During the ‘best and final’ the seller will need for you to complete the BUYERS INVESTMENT FORM. This document gives the seller a chance to ask you (the buyer) questions about your underwriting, how are you financing, what capital improvements will you make, have you underwritten to higher property taxes, and is the equity already raised. These are critical questions that the seller needs to know. The seller wants to know that the buyer has done their homework and won’t put the deal into the ditch and NOT CLOSE.
In the podcast today, we review sellers questions and handle potential answers.
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Are you interested in learning more about how Multifamily Syndications work?
Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.