What defines a serious buyer? The first thing that comes to mind is honesty. This means, someone who is honorable and forthright, and are putting their very best into making a deal they want, “fly”. As in all phases of life, business is no different. There are steps to be taken in order to make something happen successfully.
In Multi-Family, an LOI (a letter of interest), and POF (proof of funds), are imperative from serious buyers. These show simply that they have interest in a particular property, and that they have the resources to fund the transaction, if all is acceptable to both sides of the deal. In many cases there exists “buyers” who will not comply with this, and therefore are considered “tire kickers”, and time wasters…”trolls” in the world of multifamily real estate. More often than not, these types of “buyers” are not buyers at all, but elements of “daisy chains” using deceptive maneuvers to get on the money train. This is a dishonorable element that has no place in the real business world. What makes a successful win-win situation, are honest buyers and sellers working together towards establishing a positive end result.