I'm very proud to announce I SOLD another Multi-Family apartment complex in Sacramento! The best part? My clients got one heck of a deal!
This particular bank owned commercial building had some differed maintenance and had tenant challenges . Out of the nine units, there were 5 tenants still left after the owner lost the property due to foreclosure. These tenants were creating havoc for the bank, which provided an opportunity for my buyers to get a discount on the property.
Often times the best deals I have negotiated come with a headache. This particular property had a couple. In addition to tenants who had lived there for several months rent free, they decided to call Sacramento Code Enforcement and complained about the condition of the property. This forced the county to come out and complete a full safety inspection of the property. This triggered an active case with Code Enforcement included a laundry list of items that needed to be addressed.
Now many buyers would hear this and want nothing to do with the situation. This particular multi-family property was a great match for my buyers because they had cash and are not afraid of the challenge. These particular clients were looking for a deal. In fact we were able to negotiate and additional $150,000 off the asking price.
The truth is the bank could have sold this property for much more once the tenants were out, even without making one repair. They made that very clear they understood that. So we were in this sweet spot to write up an offer. My buyers had cash, it was the end of the year so the bank wanted to clear their books, and my buyers were willing to take the property as-is.
The upside to this particular multi-family property was certainly there. Although there were hostile tenants who liked to shoot at each other when they disagreed... This property was located within a couple blocks of million dollar homes! The damage that code enforcement noted was work the buyer was going to do anyways.
That is my favorite kind of investment property to sell and buy. I look for that sweet spot where the upside outweighs the headache to get there! Especially when those headaches scare away most buyers, so there is room to negotiate.
I have sold multiple properties to this particular investor over the years. As we discussed from the beginning of our relationship, they are now shifting their focus from multi-family residential units (4 units or less) to focus on larger apartment complexes where they can get more leverage.
If you are thinking of buying or selling a multi-family property in the Sacramento area, please do give me a call. I have been buying and selling these type of investment properties since 1997. I understand the process and how to find a great deal to meet your investment needs.
See all multy-family properties for sale in Sacramento under 4 units >>
See all multifamily-units in Sacramento over 4 units >>
I run a local real estate investment club and would like to ask you to join us for our next free meeting. We focus the conversation around multi-family properties purchases and maintenance. If you are interested you can check out the website at www.ElkGroveREIA.com to register for our next upcoming event! Let's get into a conversation about multi-family properties in Sacramento!
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