Two real estate investors discuss lowballing a $3.7 million property. They propose offering $2.1 million through a private equity firm to force the seller's broker to present it, using a recalculated cap rate to justify the gap.
When we ran the numbers, like the numbers don't add up because they're almost going broke as is, right?
Correct. The asking price is $3,737,000. Okay.
So here's how we do this. We say, okay, great. We'll come in at the 2, we'll come in at 2.1 where it's justifiable. And here's the cap rate to that. We show them the number, right? Because the numbers they have were really confounding, right? So we straighten up the numbers for them, send that back and say, here's our cash offer. By the way, we're a private equity firm. And they go, because now they have to present that offer. And if they don't present that offer to their seller, that's illegal.
