Need Help On This Deal!!!!!!
I'm looking at a property in Alabama. It's a small town (Scotsboro). I had look at the property about amonth ago, but my partner back out for financial reasons. at the time I could not pursue the deal alone, but can now. The property is 20 years old. The owner owns the property free and clear. Can somebody give me some creative financing options to present to him. I'm thinking of doing a hard money 65% LTV and asking the seller to take a 35% carry back. I'm only shooting for this because he called me today and asked me to drive down and meet with him about his property. He is a 67 year old retired physician who is selling because he wants to leve the area because of health reasons to move close to his family here in the Nashville area. What are some other creative ways I can offer him a win-win deal?
Thanks,
Marshall
Well Marshall,
We probably need more information. What kind of property is it? Tell us more about the Doctor.
My impression is that you have the cart before the horse. You are trying to structure the deal before you have enough information to do so. Just have lunch with the Doctor. Find out what kind of guy he is. Your seller second idea is not a bad one but you may be able to get him to carry a note for all or nearly all of the purchase, or maybe not. Depends on his attitude, goals, etc. First acquire the info then work on structuring the transaction.
the property is a 112 unit. When I was looking at it about a month ago, I saw the income/expense sheets for 2003. had went over most of the numbers with the broker at that time. Drove down and looked at the property. It is aged and could use some cosmetic work. has 68 storage units on site that are an eye-sore in my opinion. The property is poorly managed - by his on admission. The seller was burned once before in the past on an owner financing deal so the broker thought he wouldn't accept that type offer. we never got that far on the deal when my partner backed out. I'll respond tomorrow and let you know how my meeting went with the seller.
Thanks
So what happened?
Someone bought the property out from underneath me. It's not closed yet, but for all practical purposes, the deal's off the table for now. Sorry, I didn't reply right away to let you know. All your tips and advice have been extremely helpful
Ah well, hang in there. There are always other deals.