help me structure this deal PLEASE! - Posted by Shawn Dostie

Posted by JoeS on March 09, 2002 at 14:20:21:

Let me get this right. $105K for a total of 5 rental units? What will the rents be? Taxes? Insurance? Maintenance? What are the properties appraised value now? What is the area’s appreciation rate? If your credit is good and the properties are worth more than 105K, you can refi for rate/term in 12 months. If all the figures add up to a good deal, if you don’t want them, let me know! Hope this helps.

help me structure this deal PLEASE! - Posted by Shawn Dostie

Posted by Shawn Dostie on March 08, 2002 at 21:10:42:

I am looking to buy 3 SFR’s and one Duplex for a total of $105,000.00 Owner will carry financing but wants 2 yr balloon of $94,356.00. At 7% Amortized over 156 months at a payment of$1026.00 per month it will take 44 months to gain my 20% equity to refi. Any creative geniuses out there? Am considering offering $117,900.00 with $1450.00 security deposit credit, 2% or $2358.00 repairs credit with the balance of $114,092.00 to be paid in 20 installments of $1,000.00 with 100% of payments going to equity
(o% interest) leaving the same $94,356.00 balance. The owner does not want a lease option and I’m trying to figure an equitable way to acquire the props. I own a duplex and triplex in the same area and all 4 of these units appear at 1st glance to be a better value than mine. Any help would be appreciated.

Shawn Dostie

Re: help me structure this deal PLEASE! - Posted by Linda in NY

Posted by Linda in NY on March 13, 2002 at 01:36:17:

I don’t understand. If he does not want you to do a lease/option, how does he expect you to have a cash flow? Or is it that he doesn’t want to lease/option to you, but you can lease/option to your tenant/buyer? If he doesn’t want anyone living in his houses at all (which I would not understand considering the amounts and types of properties involved, esp. the duplex), then you’re going to have to flip them so you can make that balloon payment in 24 months.

Re: help me structure this deal PLEASE! - Posted by stan

Posted by stan on March 09, 2002 at 23:11:52:

sounds like you already have the right solutionexcept for the fact that he doesnt want a lease option deal…find out what it is about the lease option that he doesnt like…for example: he may not want a lease option because he doesnt want to be responsible for up keep and repairs…if so put in the contract that you will take care of all repairs during the lease option period and ask him to give you credit for any major repairs…say over $500 per incident…if not 100% then maybe 50% credit…just a thought …good luck