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Real Estate Investment Software Blog

The needs of the seller should be a primary concern when you’re trying to buy his rental income property. Understanding the seller’s reasons for selling, and knowing how motivated he or she is to move the property can help you structure a profitable offer.

In cases where the investment property isn’t listed with a real estate agent, make an appointment with the seller and essentially assure him that you are a real estate investor, not just another real estate broker looking for a listing. Sellers unless they are highly experienced in selling income property (which is rarely the case) cannot afford to pass up a potential buyer and generally will meet with you gladly. If the property is listed with a real estate agent, of course, you’ll need to contact the agent, not the seller directly.

Here are four things to consider when meeting with the seller.

1. Empathy - Telling a seller what YOU want can turn the seller off and probably cost you the deal. It’s best to put yourself in the seller’s shoes and show interest about the seller’s situation (i.e., lose of job, death in the family, etc.).
2. Get to know the seller – Ask questions that help you learn things about the seller. What’s the reason for selling? How long has he owned the rental property? This informal approach will help you discover a lot about how motivated he is to sell.
3. Let the seller know you – It’s important that a seller feel comfortable about your intentions and not just another looker with nothing better to do than visit FSBOs. It really will go a long way in negotiating a favorable purchase if the seller perceives you as a trustworthy and serious buyer.
4. What are the seller’s intentions? – It’s time to get down to business, but be sure the seller is comfortable with your intentions. You don’t want to start prying into the seller’s personal matters until you’ve established that rapport with the seller.

Okay, you’ve established ground with the seller and you are interested in purchasing his rental income property. Now, you want to start learning everything you can about the complex such as price, terms, closing date, etc. When it’s over, hopefully you picked a winner.