Need Sugestions??
I have stumbled onto a prospective great deal. Here are the details; Person is looking to retire and owns 2, 6-unit apartments free and clear. Selling for 250K and they will carry a 200K loan 7%, interest only for 5 years. Asking 50K down. Gross monthly rents are $3300.00. I have reciently started in REI and have 5 properties now, each one cash flowing pretty nice (all 4-unit or below). My problem, is that while I have great credit, I don't have 100K sitting around. Any sugestions on how I could get the cash to make the deal?
I don't have the equity built up in my current properties, since 1 did all with 100% in the last 7 months. Thanks in advance for your sugestions
try to get the seller to take more money on the front end and subordinate their mortgage to a new first.
Instead of 50k down and a 200k mortage try to give them 200 up front (from a new first) and they cary a $50k second mortgage.
Wow, that was so obvious I didn't even think about it. I have contacted my broker and he is working the loan details. Thanks for the advice.[ Edited by hoober on Date 04/22/2004 ]