Thinking of buying a multi-housing?
Investing in real estate and buying an income property is not an easy task, as the choice between one property and another can make a whole world of difference. This is when we come into the picture.
Buying with RE/MAX du Cartier A.S. is putting all the odds on your side, because we never recommend to buy a property, large or small, unless it passes our strict due diligence and meets our profitability ratios.
Please consult our brochure
REMAX DU CARTIER A.S.
Here is how we go
about buying a building:
1 Due diligence
Right off the bat, we examine the building that interests our client from every angle… financial metrics, overall condition, neighborhood, and demographics. We conduct an in-depth analysis to confirm if the building in question makes sense and is worth its money.
2 Building inspection
The inspection closely examines the roof structure, exterior envelope, foundation, plumbing, electricity, heating, ventilation and air conditioning systems, fire alarm and interior finishing. Such detailed building inspections undoubtedly confirm if the building we are about to recommend is worth it, or not.
3 Mortage financing
If mortgage assumption is not required, we then present a lending proposal to different institutions we work with to compare interest rates, terms, amortization periods and of course cap rates. We compare the different term sheets we receive and select the one that has the best overall terms and meets client’s criteria.
4 Financial analysis
Which financing should the client pick? To answer this especially important question, several scenarios are examined considering client’s game plan, be it to increase building’s NOI, cash-on-cash, pay down the mortgage the fastest way possible, etc. Of course, this is conducted with our client’s interests in mind.
This fine tuning is the final step prior to tendering a purchase offer.
5 Purchase offer
We draft the offer according to what was agreed to and proceed with the negotiation of the purchase price and terms and conditions.