Holy crap, I just made an offer on an apartment building! Now before you get all excited for me lol I didn’t put in an LOI (Letter of Intent) or an agreement of sale. I just threw a number out at a broker to see if the seller was flexible.
It’s not a huge building. Only 30 units but they wanted $1,150,000 and the numbers just didn’t work at that price. My Maximum Allowable Offer (MAO) is $950,000 but I mentioned somewhere between $900k to $925k to the broker.
Btw, I’m learning that LOI’s are the way to go in commercial deals because of all the due diligence that you have to do I guess if they accept the LOI terms. And then you write up the agreement of sale.
But I’m still excited about verbally (or well typing) giving an offer. That’s my first one ever on an apartment building.
Will let you know what the broker says. He’s been pretty cool with all of my questions and such so far and even was cool when I mentioned I didn’t want to offend him or the seller with my offer and if the seller was negotiable? 🙂
Off to do an ATM install at the Chinese Buffet (we switched the day to today….I’ll post about that cuz I’m a lil ticked off at my ATM folks.) Plus next week or so, we’ll have another install at a cash only deli (go Kathy!) and ummm guess what? We need to order a new ATM for that place lol
P.S. Rachel and Scott gave some good advice into my plugin issue…I’ll try to check it out later. Grr!
P.P.S. I know I’m pulling a Steph here with all the p.s.’s and such but just thought I’d let you know that I AM NERVOUS!