Mar, 2025

How To Negotiate Cap Rates With Commercial Property Brokers

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Here’s a clip from one of our monthly ATL Zoom Meetings. Inner Circle Member Gustavo asks Rob Rowsell about negotiating with commercial property brokers. Can buyers negotiate cap rates? The answer is YES! You CAN work out attractive financing deals with real estate brokers and sellers – every deal is different!

Rob Explains How To Negotiate Cap Rates

We know that the market, as well as a property’s location, condition, and income production are factors in its cap rate. The brokers themselves can also factor into that number. Rob provides a few tips on how to negotiate cap rates on commercial real estate deals, specifically with property brokers.

While brokers are responsible for getting the biggest returns for their partners, they may also resort to casting a wide net for investors. Every broker has their own top five investors. When none of those work out, they may turn to the other brokers in their office for recommendations. If each of their top five investors pass, the next step is looking for retail buyers.

Building Relationships With Brokers

Then you, a seasoned property investor, come along. Take the time to convince them that you know what you’re doing before attempting to negotiate cap rates. You are not a fly by night operation. When you build a relationship with a broker, you can submit offers that are more realistic than the ones they’ve been sitting on. Maybe the first few offers get rejected, but when the selling broker learns that you know your stuff, you are more likely to get calls from them in the future.

Remember, if you become a member of Rob’s Addicted to Life Community, he will personally inspect your underwriting. What could be better than getting advice from the best?

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Sep, 2024

The Surprising Truth: Capital Extensions For Property Deals

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Let’s say that you are in the process of putting together a real estate deal, but all of your funding has not come through yet? Can you get capital extensions in writing for your property investment deals? When sellers write Real Estate deals, contracts often allow for deadline extensions, so that buyers can round up more investors. Rob explained the process of asking for capital extensions to one of his callers on one of his monthly Inner Circle Group Zoom Call.

How To Write Capital Extensions In Your Real Estate Investment Deals

On the call, our friend David remarked at how amazing it was that Rob and Claudia could do their due diligence in such a short span of time. Closing real estate deals is a very complex process, after all. He asked Rob to walk through the process from fundraising to close. What happens if the buyer can’t raise enough funds in time? Do sellers typically accept capital extensions in buyer contracts, and how many are the standard number that buyers can receive?

Rob explained that he asks for up to two free 30-day extensions when he begins the real estate buying process. This is a bold ask, but if you don’t ask, you’ll never know! He rarely gets it, but sometimes he can negotiate one free 30 day extension and an additional 15-day reprieve if needed.

Often with capital extensions, a penalty fee will apply. If you pay that fee, though, you have enough invested that the seller knows you are serious. You will raise the funds and deliver them in a timely fashion. In the unlikely event the deal falls through, as a general partner, your investors are safe from losses.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Feb, 2023

Real Estate Negotiation Class – Fine Tune The Offer!

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When underwriting, make sure you get all the information before you make your offer! In this real estate negotiation class, Rob Rowsell talks about covering all your bases. If not, you may end up paying way more than you have to! Sometimes, brokers don’t ask all the right questions. Also, sellers will often provide misinformation, whether intentionally or not.

Real Estate Negotiation Tips – Get the Right Info, Get the Right Price

Rob opens up the class by recalling something he discovered while researching for a property deal. When he looked at the seller’s T12 (trailing 12 month) form, he found $12,000 listed under “Other Income”. Rob’s investment team had not yet asked what this extra income was, so he did.

The seller replied that the money was actually Nevada state reimbursements. Since those do not count as actual net income, the seller had incorrectly reported the income report form. Technically, by listing that amount as income, the seller overvalued the property by over $150,000! Yikes!

Because neither Rob’s team nor the broker caught the error initially, this could have added up to huge losses down the line. In the short term, it cost time in the real estate negotiation process. As we all know, time is money. So remember, it is important to have a team of experts helping you, but make sure that you do your research as well. If you are not knowledgeable about investment forms, tax codes, and income reporting, it could cost you big time!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!