Almost daily we receive an email, call, or text asking if we’re interested in selling one of our properties (we also receive letters in the mail asking the same, but those all get recycled).
We do our best to reply to each of those inquires. Our typical reply is this: “While we’re more often buyers than sellers, we have sold from time to time. Feel free to send an offer, if it’s in range, we’ll at least reply and see if we can make a deal happen”
As active buyers ourselves, we’re also reaching out to owners asking if they’d want to sell. So we understand the struggle in getting a reply, much less making a deal happen. More often than not, we’re told they don’t want to sell. However, we also know that even if someone isn’t a seller, at the right price they are. Think about it this way: If someone called and asked if you were interested in selling your home, you’d likely say “no”. But if someone said “I’ll pay $10m for your home”, then your answer might be different (well, depending on how big your home is ;). Meaning, at a given price, any property can be bought. The issue is more of “Can this property be bought for a price that is reasonable to pay”
So back to the main topic: If you’re asking us if we want to sell one of our properties, the answer is ‘no’. If you’re asking us if we would sell one of our properties, the answer is ‘yes’.
So where does a potential buyer go from here?
If you’d like to buy one of our properties we simply ask that you sent an Letter of Intent (“LOI”) and a buyer bio (so we know who we’re dealing with) to deals @ fatproperty.com Note: We do NOT arrange tours or send out financials of our properties as a first step in this process. We’d like to make sure we’re dealing with a serious capable buyer who’s interested in the property at a price that we can accept. If we sent out rent rolls and financials to each person that said “I’d like to buy your property”, we’d be doing that all day. Let’s see that you’re a serious buyer before we open our kimono.
If you’re wondering how the heck you make an offer on a property you haven’t seen the financials on, that’s a reasonable question. We are required to do it all the time when we’re bidding on properties. If you’re an active buyer/owner in these submarkets, you should feel comfortable working up a proforma. There are only a few major line items on most income statements before you start hitting items that are rounding errors. Plus, what we have as our costs might be radically different from what your costs are. For example, our management costs are not your management costs. We may not have insurance if we own a property in cash, while you might want high end coverage. Our income statements might have capex thrown in while you might not include those in your NOI calculations.