I have some signs up around town “We Buy Houses, CASH, call …”…i have received several calls since last week. I am meeting a seller tomorrow. He has 14 units in 3 buildings side by side. I did a driveby and they are very nice. I had the opportunity to talk to a tenant and he said all the tenants are great, place is clean, etc etc.
I do not have the capital to buy this many units. My plan of attack is to get the property under contract then sell the contract to another investor. My question for the pro’s around:
How do I handle this meeting?
This is essentially my first deal. These units are not on the market. He is selling after owning for 45 years and is now retiring.
Any tips will be greatly appreciated.
I’ll keep everyone posted.
Thanks for all your time,
As far as i’m aware, most investors are going to want a more runned down type of property, something they can rehab to sell, or rehab to hold and lease out.
Also, usually single family homes.
Is the property priced low enough to leave enough profit margin for a potential investor and yourself?
I’m looking forward to hearing what some of the more experienced investors have to say.
a little more information on the property couldn’t hurt…
is the current owner asking for market value?
Thanks for the replies. Like I said, I do not have any details other than the following:
-selling because they are getting out of the business altogether
-not on the market
-they have been contemplating for some time and decided to act when they saw my sign
I am just looking for some general guidelines I should follow when I meet him tomorrow afternoon. Any specific questions? What should my goals of the meeting be?
My goal is to get the property at a low LTV and in turn sell the contract right away.
Well, it’s tomorrow afternoon, so don’t know if it’s going to help.
Really not enough info to give good advice, but here goes.
First, find out what he expects to get.
Second, find out any other info on the property that you can that could affect your buying (or selling) the property.
Third, should go without saying, but when price comes up, inform him that you are an investor, and as such, only buy properties that make sense financially (ie, they much be bought at a DEEP discount).
Once you have some more info, come back here and we’ll go from there.
As to selling/assigning to another investor. Understand that the property much be bought at a DEEP discount in order to resell to an end investor. Investors want to sell CASHFLOW! If you don’t have any ideas of who you might want to push this deal to (if you get it), then you want to have a backup plan in place. If you have no clue as to how you are going to move this if you go to contract, then you probably shouldn’t do it. Other options is to simply birddog it out to another investor. You get a cut without the risk. Or you could place an option on the property, giving you some time to find a buyer.
Finally, if these are owned free and clear, it may be possible to work out some form of owner financing with the seller.