Wednesday, January 2, 2013
Quality Properties Commanding Solid Prices
Rolling "low-balls" at sellers may have been an effective approach between 2008 and early 2011. But in 2012’s environment – at least in rebounding markets – it was counterproductive if you truly wanted to buy.
Today, in most cases, if you trip across a quality investment grade property that someone has decided to sell, you won't get it for dimes on the dollar. Particularly in the multifamily housing sector and geographical areas that have remained strong economically.
I have numerous high-dollar buyers and we cannot find the quality they demand for the dollars they want to spend. What is available often is either overpriced or has so much deferred maintenance that the purchase cost and the cost to upgrade create a scenario where the property doesn't make any sense.
The quality is out there. The buyers are out there. I have never been afraid to aggressively go after a property on pricing, but the "steals" are mostly gone unless you are going after $15,000 single family rental dumps and can still talk owners into giving it to you for $1,200 or so, assuming they are so hard up they have no other choice.
Posted by Brent Greer at 1:22 PM