As a broker for over 30 years, I have a vast network of investors, top brokers and agents, mass mailings, domestic and international websites, internet advertising and marketing through the local multiple listing service accessible to over 23,000 real estate agents.
I will determine the sophistication of the buyer and qualify them. I will confirm they have experience owning investment property, and if they don’t, I will instill confidence by giving them a prepared “Landlord Kit” to assist them in managing their new investment. Keeping the deal together is just as important as finding a qualified buyer.
After marketing a property and locating a ready, willing and able buyer …
I instruct buyers and their agents to drive by the property only … and not to make the tenants aware the property is for sale. If the buyer shows further interest, I provide information on the property, including gross scheduled income, capitalization rates and yearly expenses. (When providing this information, I will also qualify them as to their seriousness and financial ability to make a purchase. I also want to know if the potential buyer has any experience managing and owning multi-family property.
If they are sincere and qualified, I will explain that a written offer must be presented to the seller prior to a personal viewing of the interior of the property. If the interior is not to the buyers satisfaction, they have the option to either redraft the offer based on their interior viewing and resubmit or back out completely.
(Depending on the situation and how many units are involved, I may arrange a vacant unit, a manager's unit or one of the average units to be viewed prior to an offer if one of the tenants is amiable)
Often times I need to explain to a potential buyer that an investment property is exactly that - an investment! If the tenants are disturbed or think that the property is for sale, they may move out, thinking that a new owner will raise rents or want to occupy one of the units. If a tenant moves out, it means there is a vacancy - and less income. The tenants should not be disrupted!
If I'm marketing a 20 unit complex, we will not be disturbing all the tenants. We may view a few of the units that have different floor plans or conditions AFTER we have mutual agreement. If the buyer wishes to continue, we will then arrange a professional inspection (paid by purchaser) and legally notify all the tenants of the inspection. If there are any problems that are discovered in the inspection, the seller may need to fix certain items, give a monetary credit or adjust the price accordingly..
If a potential buyer doesn't want to write up an offer prior to seeing inside the building, after I have explained the importance of writing an offer as the first step... this tells me that they are not reasonable and too difficult to deal with or not a serious buyer. I don't want to work with these types of buyers... and neither do you.
Eliminating the unqualified buyers at the beginning is important to controlling the situation. My marketing and negotiation techniques have benefited my clients for over 30 years. Better offers, quicker offers and more qualified buyers!
When we meet, I will give you my comprehensive list of tools and checklists I use to keep our transactions on track.
There will be many obstacles that may or may not arise, but rest assured, my experience will help you avoid the problems that regular residential brokers are unfamiliar with.
I network and communicate with investors and brokers that deal specifically with rental properties...and if a broker without any experience in multi-family properties has a qualified buyer, I may need to do most of the work in the transaction, but I have no problem with that.
Copyright 2021 FRED GRUNEWALD
How does Fred sell property without disturbing your tenants and without "For Sale" signs?"