I am looking at a 8 unit and 12 unit complex. The asking price is $900,000 and the NOI is $83,400. I talked to the seller today and he would do a Land Contract. Are there any private lenders out there that would consider lending the downpayment. The offer I am thinking about is $750,000 with 10% down. Any sugestions or coments would be greatly appreciated.
Sounds like you need to speak to a mortgage specialist because your offer is going to be $150K below the asking price or 17%. I think you should prepare various downpayment/payment schedules with varying purchase prices because there will probably be some negotiating involved with this transaction.
Without knowing what the owner’s motivations for selling are and how accurate the net operating income is, I’d suggest that you look into friends and family money to generate the 10% down payment after you’ve scrubbed the deal and have a full understanding of how you’ll get in, how much you’ll make, and how you’ll get out.