Frequently Asked Questions
Maybe you have a few questions. That’s okay; most people do. So here’s a quick collection of some of the questions people ask us… along with our answers. If you still have a question, don’t hesitate to contact us (or give us a call) and we’ll be happy to answer it for you.
Q: Will you be listing my multifamily property on the MLS or actually buying it?
A: Great question. We’re not brokers, and we don’t list multifamily. We are professional property buyers: We buy multifamily property that meet our purchasing criteria. From there we may repair the property & add it to our portfolio.
Q: Do you pay fair prices for multifamily properties?
A: Several of the properties we have purchased were below market value (There was significant deferred maintenance & tenant problems). We are looking to get a fair price on a property. However, in our experience, many sellers aren’t necessarily expecting a large “windfall” on the property but rather appreciate that we can offer great terms, we close quickly, and no time or effort or expense is required on your part of fix up the property or pay broker fees. If that’s what you’re looking for and you see the value in getting your multifamily property sold… let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)
Q: How do you determine the price to offer on my multifamily property?
A: Great question, and we’re an open book: Our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, the local CAP rate, and rental income for the property. As you know, multifamily values have went up in the last 5 years and most areas are quite competitive. We take many pieces of information into consideration… and come up with a fair price that works for us and works for you too. In most cases we can get a ballpark number if you have the current NOI for the property. For mobile home parks we do not give “park owned homes” full replacement cost value. We add those in at a wholesale price cost.
Q: Are there any fees or commissions to work with you?
A: This is what makes us stand out from the traditional method of selling your property: There are NO fees or commissions when you sell your property to us. We’ll make you an offer, and if it’s a fit then we’ll buy your property (and we’ll often pay for the closing costs too!). No hassle. No fees. We make our money after we pay for repairs & increase the rent on the property. Ultimately, our goal with every purchase is to increase the NOI & give our investors the best return we can.
Q: How are you different from a real estate broker?
A: Real estate brokers list properties and hope that someone will buy them. The broker shows the properties to prospective buyers if there are any (the average time to sell a property in many markets right now is 3-6 months) and then take a percentage of the sale price if they find a buyer. Oftentimes, the broker’s commission is 3-6% of the sale price of your property (so if it’s a $500,000 property, you’ll pay between $15,000-30,000 in commissions to a broker). Brokers provide a great service for those that can wait 3-6 months to sell and who don’t mind giving up some of that sale price to pay for the commissions. But that’s where we’re different: We’re not brokers, we’re property buyers.
Q: Is there any obligation when I submit my info?
A: There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your property to us… and we won’t hassle you, won’t harass you… it’s 100% your decision and we’ll let you decide what’s right for you.
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