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.
To receive our FREE 15 page WHITE PAPER REPORT on the 2018
FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about
upcoming events at Old Capital Speaker Series please visit us at
OldCapitalPodcast.com
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.