Re: Here’s the deal…need help on 24 unit - Posted by Ed Garcia
Posted by Ed Garcia on February 03, 2002 at 14:14:51:
You’re on the right track. Just remember nothing ventured, nothing gained.
The technique you’re attempting can work with your circumstances, but I don’t think the deal is strong enough to absorb the cost of hard money. If your NOI is right, it’s just under a 10 Cap.
Another thing I’ve seen is where the buyer found a trade for the seller with profit in it and used that profit for the down payment as well as a seller carry-back.
You’ll be surprised what you find when you look for it.
Lets face it Rob, you’re going to have to look harder for a deal than an investor with money and credit, but it can happen. My suggestion is to look for a motivated seller who is in trouble with their units. This kind of acquisition will usually have lots of upside.
Don’t be afraid to find a partner. If you found a property with up-side potential, it usually needs to be renovated and than you can present it to another investor to partner with.
Never let anyone discourage you, when working a deal like this. The difference between fantasy and reality on a deal like this is the potential and up-side of the deal, as well as a solid game plan.
What do I mean by solid game plan. I mean for you to do your homework. That will allow you to know your deal, giving you confidence when approaching a potential partner. When they see your confidence, and that you have a good deal, they in turn will not only have confidence in you, but will want to do your deal.