Paying A Down Payment

Hello everyone, My name is Maxine. I reside in Richmond VA. I am helping an investor friend of mine acquire some rental properties with none of his own money. He has a option to purchase 8 rental properties for 320,000.00 with 64,000.00 to seller as downpayment. The seller is willing to hold the note for 15 years at 10%. What are some ways we can structure the 20% down payment? Any advise would be appreciated.

Maxine :-?

Comments(5)

  • tbelknap17th June, 2004

    Anyway you want. This is a broad question and very hard to answer in one post.

  • dealfinder22nd June, 2004

    Are you supplying the 20% downpayment and are asking how you should structure your agreement with him? Your question is not clear enough for us to offer any help without some clarification.

    Dave
    [addsig]

  • hibby7622nd June, 2004

    not your question, but.....

    Does it cash flow with a 10%, 15 year ammoratized loan???

    15 years would kill the deal for me unless the numbers were incredible.

  • active_re_investor23rd June, 2004

    Maxine,

    What does it me '[you are] helping an investor friend'?

    Who decided to purchase the option? When the decision was made what was assumed at that point about the down payment?

    Will the seller be placing a note for on each of the 8 where the total owed them is split evenly? Could you sell one or more of the 8 to a cash buyer (cash or conventionally financed) so that you can release enough profits to then fund the balance of the deal?

    What is your stake in the game? Could a money partner be brought on to fund the down payment?

    Oh, do answer the other questions raised about the cash flow.

    John

    Quote:
    On 2004-06-16 20:10, glo0505 wrote:
    I am helping an investor friend of mine acquire some rental properties with none of his own money.

    Any advise would be appreciated.
    [addsig]

  • glo050523rd June, 2004

    What I mean by helping him is that I am doing the research and office work while he works a 12 hour day job. I personally want to get into pre-foreclosures.

    The cash flow is a little over $1300.00 per month total. The contract for deed is for all 8 houses (lump). Looking for ways to come up with the $64000.00 downpayment. Each house is selling for 50000.00 and all have tenents paying 600.00 -625.00mo.

    Had thought about trying to offer the tenants the lease/purchase option but not nearly enough upfront option money would be collected to fund the downpayment.

    Maxine

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