Is The Following Scenario Possible?
Dear Group,
I had a quick question. I was wondering if the following was possible:
Property:
62- Unit Rental Property in Manhattan.
Ask Price: 5 Million
My Strategy:
- Obtain a 90 to 120 day option on the property.
- Seek traditional financing for property.
After speaking with my mortgage broker, he said that a 25% downpayment would be required approx 1.2 Million
If during the option period, I sell 10 Apartments at $150,000 each, I have 1.5 Million - enough to cover down payment and possible closing costs.
Thus I would be left with:
52 Apartments @ 4 Million dollars, with a 1million dollar downpayment from the sale of 10 apartments.
This seems like a creative way to leverage a couple of dollars into a multi-million dollar deal. Can someone comment on whether or not this is a viable strategy?
-Angel
can you get all the entitlements w/in 120 days
is pre-selling legal in NY.
Maybe you can sell an option for the unit rather than the unit itself.