2019-06-12_624x417

Our Acquisition Process – Part 3 of 5 – Negotiate

In Part 3 or our series we negotiate with sellers and conduct physical due diligence on a property.

Follow us on our five part series behind the scenes of our private equity real estate acquisition process.

In Part 1 we found the best cities, neighbourhoods and properties to invest in. In Part 2 we analyzed the properties and decided if we wanted to place offers.

Prepare the Offer

To determine the offer price, we use our pro-forma financial model from Part 2 and combine it with market research about cap rates and recent sale transactions.

Submit Offer

Submit offer and wait for a response. If the offer is accepted, further due diligence begin.

Offer Accepted

At this stage, we start looking for a mortgage and conduct extensive physical due diligence. We hire professional inspectors to look at all major mechanical, electrical, and structural systems.

Re-Negotiate with Seller

If any major issues are found, we re-negotiate with the seller to bring the price down to compensate for the cost of fixing the issues.

Follow us to Part 4 of our series where we discuss the Closing process.

Five Part Series on Our Acquisition Process

Share this post

New Associate

Two Sevens Capital would like to welcome Ryan Malenfant to the team. Ryan joins us from a boutique consulting firm in Toronto where he specialized

Read More »

Don't Miss A beat!

Subscribe Today For Great Content Weekly