The market for investment property has heated up. As the credit markets are favorable towards multi family investment properties the competition for quality properties has increased substantially over last year. There are now multiple offers being submitted with cash buyers winning out in many cases, even if their winning bids are not the highest.
Seller’s have gained greater leverage as their agents are pre-qualifying buyers and sorting through terms and conditions in order to recommend the best option to their clients. Eliminating offers includes such subjective criteria such as “the principal” wasn’t even willing to the initial tour of the property and sent his agent to take a look. He/she must not be serious since they did not make the investment of time to even attend the walk through.
Every buyer has a specific measure of success based upon their own track record. This is important to understand in order to best match them with suitable opportunities. A true advisor is one who is able to view the investment property through their set of eyes and through the experience of their clients.
The keys to success are to understanding the interests and objectives of both parties on either side and work towards a meeting of the minds. As long as the credit markets are favorable towards multi-family we will see robust activity driven by buyers who finally feel it is safe to venture out again in the current recovery cycle. Apparently everyone is thinking the same thing.
Need assistance with an investment property in the Los Angeles area? Contact Arnold Ng, CCIM of Apex Commercial Real Estate.