Working with new company to possibly be buying... Question on how to find worth on a set of MF housing..
I talked to the owner and he is interested in selling a property We really like, but he mentioned he was offered $12M for it and declined. 

How can We find out all the information to make a good offer that won't be denied? 

property is located on almost 5 acres is almost 90 units and is in a great location, just needs love.

Any helpful information on how to go about finding the properties actual worth and how to make a good offer would be greatly appreciated. 


[{"id": "e4a672e", "text": "I have literally no information about your market to even border on a guess. Don\u2019t see why people post these kinds of questions on Reddit when the answer is staring them in the face: put in some effort and consult a freakin comparable or something. Damn. ", "replies": [{"id": "e4aa112", "text": "I wonder if this is how my clients think.  It would explain a lot. ", "replies": [], "depth": 2}, {"id": "e4bxh6k", "text": "I am working with a group who is experienced.. I just wanted to know more so I can follow along as I learn :) .. I thought of you all and wasn't sure what would be needed to make more of this... as again I am learning... \n\n\nOregon is the State, Washington County,  occupancy is one open out of 88 units.. they make about $92k  month before bills etc.. \n\nI have been looking at comps in the county but not many of them or any I have found so far are for sale... \n\nAnd.. you might see these as people are trying to learn.. :) Adn you might see them posted as well I didn't really have a network to ask as I am new to this part of it all .. ", "replies": [{"id": "e4c00w5", "text": "Where are you looking for comps? How are you involved?", "replies": [{"id": "e4c5kt4", "text": "I am only researching, as I want to get into this industry of being part of the buyer/seller group that a friend has and needs help in. I have been doing comp seeking like I do for managing apartments, I am looking on for sale sites, and checking assessment papers online currently  ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e4aaenm", "text": "Need more info on location, state of the property, age of the property, occupancy, and income. At the very LEAST just to get a very broad idea of what it MIGHT be worth. ", "replies": [{"id": "e4bx8jj", "text": "I am working with a group who is experienced.. I just wanted to know more so I can follow along as I learn :) .. I thought of you all and wasn't sure what would be needed to make more of this... as again I am learning... \n\n\nOregon is the State, Washington County,  occupancy is one open out of 88 units.. they make about $92k  month before bills etc..  also .. they only have a staff of 3 .. 1 Maintenance, one Office, one part time (cleaning) \n\nState of the property is good needs new paint and some new windows but Manager seems to be doing well with what she has and keeps it full and clean. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "e4aceu6", "text": "You can go to a CRE firm and ask for a BOV of the property, he should give you a number you can work on. ", "replies": [{"id": "e4bxht7", "text": "Thank you!! ", "replies": [], "depth": 2}], "depth": 1}, {"id": "e4adh1o", "text": "This is where having a broker is useful. You\u2019re not paying the broker unless it gets negotiated into the price, and the broker will do all of this for you. Ask for help, it\u2019s our job to do this stuff everyday. ", "replies": [{"id": "e4bxj55", "text": "They have a broker, they have everything they need I am just trying to learn the ropes so I am not lost in it all.. so that I can be successful ", "replies": [{"id": "e4bymky", "text": "You can have a buyer's agent represent you. They can guide you through the deal, negotiate/write the contract for you, and make sure everything is taken care of. Again, you don't pay for the agent to help you, and the selling agent does not have your best interest in mind at all.\n\nedit: Unless the company you work for is buying it and it's your job to do that. If that is the case make sure you are following all commission structures to your state's laws.", "replies": [{"id": "e4c5pma", "text": "The company my friend runs will be doing the buying .. I am just putting my toes into this industry as perhaps a step up from being an apartment manger", "replies": [{"id": "e4ctv5p", "text": "Then the best thing you can do is ask to be copied on all the emails, sit in on conference calls, and be at everything you can during the due diligence period.\n\nI'm two years into real estate and I still go to things that don't involve me if I think I can learn from it.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e4aen8a", "text": "I feel like if you are asking these questions you arent quite ready to dive unto a 12m MF investment.... try a quadplex first?\n\nedit: btw... this is totally where you look for an experienced broker.", "replies": [{"id": "e4bwxbl", "text": "I am working with a group who is experienced.. I just wanted to know more so I can follow along as I learn :) ", "replies": [{"id": "e4bzwf2", "text": "To be fair, they should be teaching you... I guess start with cap rates and go from there. But I would speak up and ask questions while youre working witg the group", "replies": [{"id": "e4c5nwh", "text": "I am asking... I also manage apartments currently so I know this end of it .. and my friend who is inviting me to learn the process and perhaps work with them I ask a lot of questions, but I figured asking a broader range of people might not hurt as well. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e4akgrp", "text": "Having the NOI and what kind of return you want will be able to tell you what you can pay for it. ", "replies": [{"id": "e4bxmx2", "text": "Would having the NOI and knowing say .. if they pay $18M for it knowing about 20 years for a return at rate now.. (or 30-40 years if they do all the updates they are wanting to do) ..  ", "replies": [{"id": "e4bzx9j", "text": "Yes. Put that in a financial model and figure the feasibility at that price. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "e4aqerd", "text": "Get the NOI, leases, property taxes, utilities, etc. Build a financial model with it, and assume the owner's assumptions are far too optimistic. Also find comparable properties and see what they are going for in your area. \n\nThis may help you estimate the value but it is still a shot in the dark with your inexperience.", "replies": [{"id": "e4by4ei", "text": "They are sure it is overshot by the current owner but they really like the location... so they want to see if they can make it work...\n\nCurrently the property makes about $93K a month, Utilities (W/S/G) are about $4-6k but they are working on making all things led...  Takes seem to be about $40k a year about.. \n\nProperty is almost 5 acres, 88 units 1-3 bed flats and town homes, 11 buildings, all units but one currently filled.", "replies": [{"id": "e4clc9v", "text": "If the numbers don't make sense then you should not rationalize it by location. Especially where we are with asset prices/valuations.\n\nIf you buy the property then in the next recession you will know whether you overpaid or not.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]