Seller is asking to much

How do you get a owner to lower his asking price on a multi unit apt when a loan of 75% LTV will be more than the income
In General Area - Asked by Brian C. - May 6, 2010
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Answer(s)

Dennis M.
Corporate Investor
Bronx, NY

Show him the numbers they don't lie and if he does not make a price adjustment move on. If the seller is not motivated your are wasting your time. I am a licensed real estate agent and active investor so email me at dmilton335@aol.com with any further questions

May 6, 2010
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Jennifer D.
Broker/Agent
Danvers, MA

Try presenting to him a really good cap rate analysis. I'm not sure what market you are in, but up here in Boston a solid 8% is still a good predicted sales price number. I try to list between 8.5 & 9, that is of course factoring good vacancy, management & maintenance numbers. I'm not always successful in achieving that, but at the same time I am not at all afraid to walk away from marketing a property at any time. Time is just too valuable in this marketplace to waste on a property that simply isn't going to sell. Good luck with it and shoot me over the listing and I'll see if any of my guys are interested!

May 7, 2010
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Leili M.
Broker/Agent
Campbell, CA

There are ways to smoke these kind of sellers out. You can do a quick math and show that the new buyer will make MORE money in a 6 month CD vs buying their property with it's current income. Then u can ask them the Open-Ended question as to WHY someone would risk purchasing your building for Less ROI than a bank CD!!
But at the previous poster suggested, this is a clear indication that you don't have a serious seller and you would be wasting a lot of your time. I would 2nd his suggestion and walk if he ignores your math on ROI.

May 9, 2010
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Cutting Edge R.
Broker/Agent
Decatur, IL

I have had this happen to me. I simply put the question back to them- would YOU buy it at your price- NO? then why should I? Show them the cold hard numbers, and if they still refuse to cooperate- I walk.
You can not afford to get emotional about investment property.

May 10, 2010
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