Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How I Nearly Lost My First Multifamily Deal

13 Jan 2023 · 1 min

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Christian Osgood underbid his first multifamily deal by $10,000, planning to negotiate down after inspections. When he found minor issues and asked for the deduction, the seller refused and the deal collapsed. He learned that lowball offers don't work; you need a realistic price from the start.

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One of the things that I tried to do— this is actually on my first deal ever— I knew I was off about $10,000 from what I really wanted to offer. And the advice I was given, which was incorrect, was, look, get the darn thing under contract, go through your feasibility, and then at the end of feasibility, we already know there's some little things wrong with the building, just mark them off on the inspection report and ask for $10,000 less. So do the negotiations in the future. Well, guess what happened? This is my first deal, and this is how you learn this. I went through, I did the feasibility, there were things wrong with the vents, some of the appliances, and a minor issue with the furnace, but enough to, you know, bring it up, go, okay, the deal works for me, $10,000 off. Guess what they responded? No. You lost.