100% Vacant Multifamily?
Was wondering how is it possible to purchase multifamily 25 unit that is 100% vacant and in need of 6 figures of construction work? Has anyone had experience/advise/expertise on how to put this type of deal together?
High 6 figures or low?
What kind of location?
I assume this is mostly a financing question. What do you have for assets/experience?
[quote]
On 2004-11-08 00:13, commercialking wrote:
High 6 figures or low?
What kind of location?
I assume this is mostly a financing question. What do you have for assets/experience?
ComKng,
Repairs <150k(fully rehabbed< 5yrs ago)
Previously owned/managed by not for profit firm that ran away with all the profit, capital and paid nothing.
Located near new construction 4 flats selling for 189k+ per unit. Westside Chi-town.
I have had experience in putting tgther 120 unit congregate care deal, as well as mixed use, 10 unit multis, for client, but no experience when it comes to one that is 100% vacant and in need of big $$$repairs. Credit/Assets are no problem right now.
Owner is open to seller 2nd if paid off in <12months and w/ full price offer. He seems to be very motivated.
thanks
You need a rock solid business proposal and the cash/experience to back it up.
It sounds like there is money to be made.....but is it a good deal for you?
Figure out how to get in, how to cover the costs, how to cover the holding costs, and how to get out or refi.
I don't know enough about your situation to offer more specific advice.
This is a very unusual situation. I guess we need to know why it's empty. You don't typically empty out an income producing property to sell it. On the contrary, you want it full. What's going on? Was it condemned by the municipality because it failed to comply with code? If so, a purchase without a REALLY good handle on the rehab and carry costs would be... well... not such a good idea.