I have an investor that wants to stay anonymous to a particular property abutting his. I need the words to say to the owner of the proprty other than I have an anonymous investor. The buyer just wants it to be a reaonable price, will pay cash and close asap. Can someone help me with dialogue for this owner? Thanks in advance for your help.

Ohm it's a 6 unit 2 bed each unit apatment building. Seems to have a decent lot and is one street up from the main street which is filled with lovely atique homes, a typical main street for a new england town.

Reasonable price is a relative term.Reasonable to the buyer might be 75k,resonable to the seller might be 150k,see the problem?

Is it listed with another agent,is it fsbo,is it not listed at all?If it's listed you are required to negotiate through the listing agent and not the owner.

Before wasting everyone's time does the seller want to sell,do they need to sell,are they motivated?

Say I have a client that might be interested in purchasing your property,is it for sale?

If they say yes,then qualify them some more,you broker can give you more pointers. good luck

It's noto a FSBO..if I could speak to my broker I wouldn't be asking here. I depend upon this forum for answers to questions. So what you've said is ask if they are willing to sell? Well, she doesn't know yet...she's never been asked and I want a way to ask to pique her inteest.
BTW it's not listed with anyone... Please don't think I'm trying to steal someone's listing.

Simply approach the owner of the building. Say I am representing a client that may be interested in purchasing your apartment building if you might be interested in selling.

You could do even better on this deal. If the owner has owned the property for at least 7 years then it may very well make better sense for them to sell and 1031 it into a new investment property. Offer to do a return on equity for the building owner and see if it makes economic sense to sell. If it does it may make the owner more open to selling the property.

I know it's going to be a real simple answer but how does a "return on equity" work? I am certainly aware of 1031 programs.She's owned it for many, many years and has it in a living trust.So far thank you for your help.

[QUOTE]Originally posted by Paul Oaks:
[QB] Simply approach the owner of the building. Say I am representing a client that may be interested in purchasing your apartment building if you might be interested in selling.

You could do even better on this deal. If the owner has owned the property for at least 7 years then it may very well make better sense for them to sell and 1031 it into a new investment property. Offer to do a return on equity for the building owner and see if it makes economic sense to sell. If it does it may make the owner more open to selling the property.


7 years?
Holding Period Requirement
Many first-time exchangers often want to know how long they must own or hold a property before exchanging it. Unfortunately, the IRS hasn't stipulated a definitive time frame. The only reference to this issue was in a 1984 private letter ruling in which the IRS deemed two years as an appropriate length of time.

Some tax professionals look to the definition of short-term and long-term capital gain as a guideline. Under current tax law, an investment held for one year or longer qualifies for capital gain treatment. On two separate occasions, the IRS unsuccessfully asked Congress to add a one-year minimum holding period to IRC Section 1031.

The courts have leaned heavily toward establishing the taxpayer's original intent to hold the property for investment as a means to define the necessary time period. The taxpayer's intended use of relinquished and replacement properties is determined when the exchange takes place. Whether either property is deemed to have been used appropriately is a question of fact; the burden of proof lies with the taxpayer.

The taxpayer's action also must be consistent with holding a long-term investment. Actions such as signing a listing agreement or putting a for-sale sign on the property immediately after acquiring it are viewed as inconsistent with the stated intent to hold the property as an investment. As a general rule, if a taxpayer holds a property for less than one year before disposition, he may have to defend his original intent if attempting to use this property in an exchange.

Thank you for all that info...I appreciate it.