How To Buy A 5-Units Building? - Posted by Tony

Posted by ray@lcorn on July 14, 2003 at 22:08:43:

Tony,

Under the section that discusses how the purchase price to be paid, just do a little list of figures that shows how the deal is to go down.

Example:

Purchase Price $995,000
Earnest Money Deposit $1,000(?) (if any)
Seller Financing $282,000
Cash at Closing $712,000

You will also want to make the contract contingent on the financing (both loans).

And I’m curious what kind of numbers this has at almost $250,000 per unit? Will it have positive cash flow?

ray

How To Buy A 5-Units Building? - Posted by Tony

Posted by Tony on July 08, 2003 at 16:58:47:

Hi!

I’m in the process of buying a 5-units. The lender has approved me for first deed of trust in the amount of 712K and seller is carrying back a note second deed of trust for remaining amount. Final purchase price is $995K.

The question is how do I structure the purchase contract?

Do I have to show that the owner is carrying a second? or maybe create a separate addendum?.. Please advice…

Thanks,
Tony