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I'm very new to real estate investing and wanted to know about buying multi family units. I found a great duplex in a great location (near a major college) at a good price; however, the seller only wants "curb offers." Is this practice common with multi family units? I'm a little concerned with the fact that I have to make an offer before I even view the place. It would be so much easier to take a quick look, but the seller is a stickler for the curb offers and doesn't want to scare his current tenants away. Am I overreacting or should I be concerned about this? If I put in an offer, can't I make it contingent upon everything? I'm exaggerating, but serious.
RED FLAG -- no responsible seller NEEDS to sell a "pig in poke". CALL HIS BLUFF!!!
No need to have YOU eyeball the place. If does not want you to spook the tenants HAVE him escort an inspector of your choosing in the place. Tell him that you know all tenants appreciate the need of landlord to have their maintenance verified. Let HIM take some digital picture too. All the important stuff - kitchen, bath, utilities, roof, foundation.
He wants to play like his tenants are too skittish to even allow HIM access, just make this a financial transaction. Ask for the current leases, his bank statement and tax records. If he has done maintenance there should be receipts for that too -- no receipts, tell him flat out that you must assume the reason he does not wish you to view the property is that it must be assumed to need a complete gut and you will be making an offer than would assume a $75/sq ft cost to rehab...
If you're new to real estate, you should definitely see the inside of the place before making an offer, because you have no idea of the condition or if it's in need of major repairs that could cost you thousands of dollars, which would need to be factored into your offer.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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A Curb offer is just that. One made from the outside.
Your offer should include an inspection period adequate for you to examine the rest of the building and the books that the seller keeps for income and expenses. Any earnest money would be refundable if you find something you don't like about the property.
Make an offer. It's the only way you will get to see the rest of the place. This is also a way to separate tire-kickers from serious investors. This is done all the time. You go back and forth with the seller and arrive at a deal based on your inspections coming afterwards. You then can make further negotiations if necessary. The reason for not disturbing the tenants in most states is that it requires written notice to the tenant which becomes a PITA. In a larger complex, there usually is at least one unit vacant and buyers can look at them without intruding on a tenant.
It is the norm out here. Most multi-families are subject to buyer inspections. So you make an offer and once you agree, you get to go inside and view the place. If you like it from there you schedule the inspection. So there are two inspections. Your personal physical inspection and then the home inspector.
Totally common out here. I'm guessing this is a local thing.
VERY common with multi-family type properties. You need to make your offer contingent on interior inspections/viewing, etc..
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