3-in-1 - need ideas on how to structure - Posted by Paulette

Posted by Dave T on April 06, 1999 at 21:58:04:

Assume nothing. Confirm that the properties are separately surveyed and platted. Once you get the properties under contract, offer to sell each tenant the home they are occupying and provide owner financing for a significant percentage of the deal. You get to name your price.

I will assume here that the seller is giving you a good discount for the entire package. If this is the case, then you will profit and still give your buyers a fair market price for their homes. Your buyers should have no trouble refinancing your seller-financed, above-market interest rate loan.

In my experience, rental property with tenants in place are sold “subject to” the existing lease. This means that you have to honor the current lease. Since each tenant is on month-to-month, just give each tenant a notice to vacate if you want the properties vacant.
Be sure that the seller gives you a credit for the tenant’s security deposits.

3-in-1 - need ideas on how to structure - Posted by Paulette

Posted by Paulette on April 06, 1999 at 17:59:54:

I welcome and appreciate all the ideas and help that anyone can offer me on this one, but I would like to ask if anyone in NY specifically would like to contact me directly about this deal because I feel that I need to speak with someone one on one.

I received a phone call from a man who lives in Albany and has 3 homes on 7 acres in Westchester. The homes occupy 3 acres of land and 4 acres of land are available for development. He says that he wants out completely because he’s too old to manage it anymore. Two of the homes are being rented from month to month and one of them is vacant. This deal would be a lot easier if all were vacant, but I don’t know how to deal with homes that have tenants already living there.

I’m not sure yet if the 3 homes have been subdivided into individual parcels. He has applied one price, which tells me that he wants to sell the homes and land as a package deal.

The only positive part so far is there are no loans on the property. He owns them free and clear. Still it seems complicated to me because if I got them under contract, how would I sell? What do I do about the tenants living there? I would assume I could offer to sell them the homes - but I figure they would’ve bought the by now if they thought they could afford them.

I’d be more than willing to split whatever profit there is with someone who’d want to work on this deal with me.