Thursday, February 27, 2014
HFO's Advice for Buyers and Sellers of Multifamily Properties in the Portland, Oregon / Vancouver, Washington Area
Q. What advice do you give to an owner when they are considering putting a property on the market?
A. Find a firm that knows how to listen. By listening to what your goals and objectives are, a good broker can help put a plan together that will help achieve your goals. Be careful of those who might just tell you what you want to hear! The person you work with should listen to you, and be willing to tell you when, given all the circumstances involved, it's not in your best interest to sell your property. When you're sure the time is right, choose a brokerage team with the experience, knowledge and skill to implement an effective plan of action.
Q. What advice do you give a prospective investor when they are considering buying a property?
A. You need to have someone working for you with the expertise to analyze the properties in terms of valuation and operations. In any transaction, it's "surprises" that come up that prevent a sale. You will be best served by working with an expert who can identify potential surprises and find solutions in advance.
You'll also want to work with someone who is not afraid to tell you whether what you're hoping to find is in line or out of line with the market. Portland metro multifamily properties typically are not trading at cap rates above 7.5% and above. A buyer coming into this market sometimes needs to be educated on whether their expectations in terms of return and pricing are realistic.
Look for a firm that doesn't push you into a deal because it benefits them. Find someone who does what's right for you. A client can get the most out of a broker/client relationship when they are acting in sync over the long term.Brokers are always on the front lines of what properties are coming to market.The more they know about you and your investment goals, the more great opportunities will come knocking at your door!