How Do I Pull This Off??
I met an old guy today that has a sh**load of rentals, sfh's, duplexes, 4-plexes, mobiles...some of everything. He's looking to downsize so he can fish more.
He has 7 rentals on the same street...middle class area near an industrial park. Most of the tenants work there.
1 is a 3/1...listed at 61K, FMV 80K
6 are 2/1...listed at 56K. FMV 73K
total listed prices 397K. total FMV 518K.
I would offer 365K....Hypothetically speaking, that is.
None need major work and all are occupied.
My aim would be to sell at retail all of the 2/1's - 438K.
And keep the 3/1 for the perpetual income.
It would probably be an extreme long shot that I could get financing for something like this, but maybe someone here can give me some direction....or encouragement...or CASH!!
Have you tried going thru a mortgage broker? I didn't think I would qualify for 4 properties at once but qualified at 90%. Talked the owner into holding the other 10 which he wrote off at close.
Just a thought.
Paul:
A couple options here. See if he will finance the deals for you. If that doesnt work, why dont you tie them up and then you can wholesale the two bedrooms to someone else. Very simple, once you have a signed purchase contract, open escrow as an "assignment." Find some other investors and try to make $5k off of each one or as much as you can. You
simply collect your wholesale fee and
assign your escrow.
Dont offer him anything yet. Take this guy to lunch, befriend him. Ask him what the lowest price would be if you bought all four of them and go from there. Then
ask him if he would carry paper.
Best Riches,
Jeff Adam
[addsig]
Hard money is always a possibility and then you have a little time to get alternative financing in place. I assume that the properties are owned free and clear, otherwise you could pay him for his equity and take title Sub To. This would mean borrowing a lot less money.
I have a young friend making less than 30 K a year that has bought 10 houses in the last year. Stated doc etc. he is currently holding 2-3 6 plexes and a couple fours and dup's.
FInd a partner even if it means you get less, I would rather have 30K of 100K than nothing.
THink, think, think........