I am currently working on trying to buy 4 duplexes right now, and can understand your frustration. I just can’t seem to get over the last hurdle. Here’s my thoughts on what you can do.
Seller can take back 20% you get bank financing for 80%. I don’t think it matters if it’s on raw land or on duplexes. But there are lenders that do these investor deals.
You could buy one like this, (80/20) then buy the second on owners terms. (ie: owner becomes bank)
Or buy both on owners terms, but I’m guessing they want to get money now. ( but most will go to tax )
There’s still many more ways to do it. As I’m finding out everyday.
Posted by Nancy Kittles on June 10, 1999 at 04:29:53:
I am brand knew at this real estate investing, so help me out guys and gals! I have found 2 duplexes I’d like to purchase with asking prices of $67,900 and $68,900. Units are currently leased at avg. of $410/unit. Seller owns properties free and clear.
I have no cash for a down payment. However, I do have $40,000 equity in 24 acres of raw land that I purchased 2 yrs. ago to build my personal residence on.
I have offered to pay $120,000 for 2 properties, with $80,000 cash at closing to seller (from lending institution financing), and seller to hold $40,000 second mortgage on my raw land. I have also offered to pay all closing costs.
I offered my raw land as collateral, since I don’t believe a lending institution will loan me $80,000 knowing that the properties being purchased are 100% leveraged.
Have I “done good”? Or do I need to back out? Nothing has been signed at this point.
If the sellers are really motivated and are willing to be flexible they may be willing to hold the financing for you against the duplexes IF they new they coudl get a substantial amount of cash out of their loans immeditaly. This is a variation of a simultaneous closing type deal and ones which we do all day long.
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