We listed this property for an out of state owner and took it to market immediately, as we always do, which resulted in multiple offers on the property. The first two buyers, represented by outside brokers, fell out of contract. The first buyer walked away from the property prior to inspection, with no reasoning. The second buyer represented himself and asked for a considerable credit following an inspection done only by himself and not a professional third-party inspector. With no basis for his request from a third party professional(s), the sellers felt uncomfortable and did not want to engage with him further in the sales process.

We were able to find a buyer who was moving up from single-family rentals and into multifamily investments. At that time, Hugh and Carson each separated their interests, and represented each party separately – Hugh representing the buyers, and Carson representing
the sellers. Being able to show the buyers the upside potential in rents, implementing RUBS, and converting the gutted space into an additional unit, proved to be the value-add opportunity they were looking for. Being able to help guide the buyers through their due
diligence and ensure they hired quality third-party professionals to obtain valid concerns with some of the deferred maintenance at the property, was vital in the presentation to the seller, in order to make them feel comfortable that there were indeed items that needed to
be addressed, resulting in a successful negotiation of a credit at closing. In addition, the buyer’s relied on our relationships for finding suitable financing for the property. There were two major lenders that decided to stop lending in the property’s specific submarket during
the transaction. As a result, SVN had the clients use a reputable mortgage broker to find alternate lending that was available for the property, which ended up having similar terms to the major lenders that had just pulled out.

In the end, the buyers were happy to complete the acquisition with good terms and significant upside in the property, and the sellers finally closed the transaction with terms that they knew were fair and the knowledge that they had maximized their profit in the sale of the property. This is a win-win transaction that can only be accomplished through doing business the right way, which can seem to be rare in the marketplace.