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Our Acquisition Process – Part 3 of 5 – Negotiate

In Part 3 or our series we negotiate with sellers and conduct physical due diligence on a property.

Follow us on our five part series behind the scenes of our private equity real estate acquisition process.

In Part 1 we found the best cities, neighbourhoods and properties to invest in. In Part 2 we analyzed the properties and decided if we wanted to place offers.

Prepare the Offer

To determine the offer price, we use our pro-forma financial model from Part 2 and combine it with market research about cap rates and recent sale transactions.

Submit Offer

Submit offer and wait for a response. If the offer is accepted, further due diligence begin.

Offer Accepted

At this stage, we start looking for a mortgage and conduct extensive physical due diligence. We hire professional inspectors to look at all major mechanical, electrical, and structural systems.

Re-Negotiate with Seller

If any major issues are found, we re-negotiate with the seller to bring the price down to compensate for the cost of fixing the issues.

Follow us to Part 4 of our series where we discuss the Closing process.

Five Part Series on Our Acquisition Process

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