WHEN To Make An Offer On An Apartment Deal

I wanted to answer some questions that I’m frequently asked about multifamily real estate deals and what it really takes to make them happen.

So here is a question I get asked all the time: When do I stop analyzing and make an offer?

I always talk about the importance of laying a strong foundation; being clear on your plan, and making sure that you have a team put together to make sure that you don’t make any costly mistakes.

When do I make an offer on an apartment deal? 

First, Make sure that you’ve completed ALL of these steps:

  • You’ve gone through the numbers and done the analysis.
  • You’ve gathered up the sellers’ financials, to the best of what they have.
  • You feel confident about the assumptions you’ve put in your analysis.
  • You’ve had a conversation with a property manager in terms of confirming your assessments about the location and condition of the property.

You don’t need wait to have every utility bill for the last 14 months, you don’t need to have the tax returns for the last three years, you don’t need to have the rent rolls for the last 24 months, you will never know EVERYTHING about a deal. It’s just not possible. DON’T let that create a state of fear that prevents action. Don’t sit and stare at your numbers; that is how you will lose the deal.

Action is going to create results; don’t be scared to make an offer.

We’ve been there in our investment business, we’ve bid on deals that were listed at 5 million dollars and we’ve made an offer at 3.5 million…
You can’t get locked into analysis paralysis when it comes to making an offer. If it makes sense for you, make an offer and put the deal in your pipeline.

Don’t be the victim of hesitation.

Get irons in the fire! Start the conversation! This is how deals get DONE.
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