Speaker A tells Blake to offer $2.9 million instead of $3.7 million, backed by financial metrics: a minimum 10% internal rate of return and a 2.1% debt service coverage ratio. The numbers force the seller to justify their price or move closer to the buyer's offer.
Contract prices here, it's given us some options to negotiate at. I would actually offer $2.9 million and make them choke because at that point I would let them know right off the bat that their numbers don't match what buyers need. So in order for this to work, we need at least a 10% IRR. We need at least a 2.1% DSCR. And in order to get those, we have to have our price way closer to like $2.9, not $3.7. So scroll all the way down there, Blake, let's take a look at it.
