1. Apartment Owners Pay Too Much When Acquiring Deals
Generally, the apartment owner has overpaid for the building at purchase. To sell the property would require the owner to take a loss.
2. Apartment Owner’s Asking Price Is Too High
Typically, necessary maintenance on the building are being deferred and cost for true repairs are not estimated into the asking price. The owner is not willing to consider the repair costs as a deep asking price reduction.
3. Location Not Factored Into Asking Price For The Apartment
Ideally, the property should be located on a major street with high foot traffic to fetch market price. Often times apartment owners are asking for lower than market cap rates
4. Serious Issues With The Apartment Profit and Loss Statements
Mainly, owners fail to keep accurate financial reporting on the property. The potential investor is unable to accurately analyze the profit and loss statements for proper due diligence.
5. Apartment Owners Are Not Flexible
Practically, the apartment owner is unwilling to be flexible on the asking price. Never willing to be flexible with the investor on the price or terms. Unwilling to reduce the asking price even when the property generates very low income.
6. Apartment Owners Get Foreclosed On
Unfortunately, apartment owners are foreclosed on because they fail to sell in time. Primarily the owner can’t refinance the building because of needing repairs. If apartment owners were more willing to reduce their asking price based on actual cap rate, they could resolve their financial situations and avoid foreclosure.
Need To Sell An Apartment Building Fast?
UREH “Ultisky Real Estate Holdings, LLC” is an investment firm looking to purchase apartment buildings in distress, need of repairs, or faceing foreclosure across the United States.
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