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| How To Buy An Apartment Building |
How to buy an apartment building? You could start with a look in
the newspaper, a visit to a broker, or a search online - all
good ways. Of course, since you're looking at the same
properties as every other investor, it's not always easy to beat
the competition to the great deals. Is there a better way?
Why not look for properties that aren't yet for sale, and make
an offer? This is how I bought my first home. An ad in the paper
stating what I was looking for, brought a call from an old
couple that had been thinking about selling. I got a good price,
and they saved a real estate agent's commission. Trying to buy
an apartment building this way may be even more likely to
succeed.
Buying apartment buildings that aren't for sale starts with a
three step |
search process. you first decide what you're looking
for. Do you want duplexes and four-plexes, or larger apartment
buildings? The second step is to start looking for properties
that fit your criteria. Finally, you contact the owners.
How To Buy An Apartment Building From Non-Sellers
First of all, don't limit yourself to "fixer-uppers" or other
"problem" properties that seem more likely to have owners
willing to sell. Probably most owners of rental properties have
thought of selling, so you can start with almost any building.
How can you tell when or why a landlord is ready to call it
quits? By asking.
Of course, tact is necessary. When you call the owner, tell him
you're an investor, not a broker. Tell him you like what you
see, and |
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you can have an offer ready in a week if he's
interested. What if he's not interested? Thank him politely and
hang up, but send him your card or a letter. Investors often buy
from owners that change their minds.
If the owner is interested, explain that you are an investor, so
your offer will have to be based on your return on investment.
That means you'll need to see the books, specifically the rent
roll, listing the units and what they rent for, plus current
occupancy. You'll also need the total income and operating
expenses for the last year.
Pepare a confidentiality agreement ready before you call, and
let the owner know you'll sign it and deliver it before you see
the books. It's possibble he doesn't want the tenants to know
he's thinking of |
selling. If so, inspecting the units may have
to wait until you make an offer. Just make an acceptable
inspection a contingency in the offer.
Why should you buy income properties this way? Because having no
competition and no sales commission can mean a better price.
Because instead of waiting for that perfect property to be
listed for sale, you just find it now. Look for it, find it, and
make an offer. That's how to buy an apartment building.
About the author:
Steve Gillman has invested in real estate for years. To learn
more, get a free real estate investing course, and see a photo
of a beautiful house he and his wife bought for $17,500, visit
http://www.HousesU
nderFiftyThousand.com
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