Huge Investment Opportunity
Hey guys,
Got an investor in Mass here, moving out of state, Have two 3 familes, two 6 units, and a ten unit. I want to take them but I know that commercial loans work differently. I have very little liquid to use, and my income won't support (they are all sold individually) I want to get the 3 families (they are on the same lot) and tap equity for downpayments for the rest. Any suggestions? They all have good cash flow, and the buyer is very motivated
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Or, do you think I'd be better to try and market the property as a whole, and wholesale it? I know i can get a good deal, so maybe this is a situation for a good profit potential.
It'd be nice if you could get the whole mess for yourself. Any possibility of seller financing?
How could I set up seller financing on somthing like that? We are talking about close to 1.5-2 million dollars. I don't know if Id be able to work somthing like that, any ideas?
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I guess I was thinking that you could make payments easily enough with the cash flow, but your right, I don't know what you could do about a down payment. Sometimes I just assume everyone else on this web site is rich. On the other hand, the seller is retireing right? How much of a down payment does he want? Maybe he's more interested in the monthly income. Maybe he would be willing to accept payments for the down payment? Do you know this guy? Maybe he'll really work with you if you talk to him. I'm just brainstorming here, try to bare with me! Z
He's moving out of state, that is why he is selling
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Is he selling because he doesn’t want /can’t manage the property from out of state or he needs money to move or whatever?
If he needs cash he will most likely wont do seller financing, on the other hand if he likes the idea of monthly cash flow and is selling the property because of the management issue, perhaps he will like the idea of owner financing.
If you think owner financing makes sense to you then just do your math, figure out your acceptable terms and conditions and offer them to the seller. Whether he accepts them is a different story but you can always try!
Good luck!
Alex
Like everyone is implying, go with the owner financing if you can. Tell the owner that you will give him a balloon in 3 or 5 years with a 20 yr amortization. This way you can build a little equity and after several years you can tell the bank that does your refi that you have several years experience.
Just to update you guys,
My partner is looking to buy it all for 1.6-1.7 as a package deal, market them indivudually, and make anywhere from 1.9-2 million. And splitting profits with me. (50-100k) I love my job.
Eric
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