Help with negotiations - Posted by Stew (Nebraska)
Posted by Stew (Nebraska) on March 25, 2000 at 21:25:42:
I found a guy who has 2 houses and a duplex for sale. He is having an apartment built and will do a 1031 exchange with the current properties for the new properties.
Duplex 166000 (Two rents for $700 each, rent is below market value by at least $100)
Property 1 (Appraised at 104 selling at 102, currently rented at $900) I can’t get it to have a positive cashflow until I get down to $90000 (which is what I offered). I can get a loan for 10% down, but I don’t want to tie up around $11,000 in one deal. Especially for a break-even cashflow. Appreciation is around 6% per year.
Here is what I need help on:
He says he has to sale his house 45 days before and identify the new property in order for the 1031 to work.
The new property will be ready in September. I approached him about doing a lease-purchase. he doesn’t want to take the chance because he knows he can sell it before September. Any ideas from the pros???
This is one of those real tempting deals because its in a great area, I could handled a negative cashflow that would be offset by other rental property. I am sure the prperty would appreciate. But it is totally against “Rich Dad, Poor Dad”. As a matter of fact i would have about a $80 dollar negative cashflow, just like he did in the book. Hmmmm…
I think I know the answer to this one. Sometime you just have to talk it out. Next.