Multifamily Real Estate Investors Performing an Exterior Inspection on an Apartment Complex
The boys from 100 Percent Financed join Vinney Chopra to inspect an apartment complex he purchased. When negotiating with a seller, due diligence is second to none, so it’s best to visit a property yourself so you won’t get blindsided.
Vinney, indeed, is no stranger to the complex world of due diligence. Having been involved in the multifamily arena first as a broker and then as a syndicator, he makes it a point to conduct a first-hand assessment of an investment property.
Building inspections come naturally to Vinney. He has a background in mechanical engineer, so he is very meticulous when it comes to details. This skill has allowed him to get great deals for all of his multifamily purchases.
If there’s one thing that multifamily buyers need to learn, it’s that they shouldn’t take offers at face value. There are sellers out there who buy properties, hold, and sell them off without having paid a visit. A whole plethora of issues are hidden as a result. If you’re not careful enough in conducting due diligence, you will eventually end up paying more for a property.
You can get around this issue by using Vinney’s surefire method to due diligence. First, you will have to conduct a financial inspection on the property. Any liens and mortgage issues should be disclosed and reviewed. Once you’re done with the financial aspect of the transaction, you can then proceed with the physical assessment of the property.
For this, have your investment team come with you to inspect the property and see if there are any issues you can resolve. If you’re planning to provide value-adding components to the property, you can plan out any possible developments that can help you raise the property’s value by a significant margin.
Use these methods, you will be able to close a successful deal that won’t cost you too much but will provide great cash flow for you and your investors.