little or no money down-land contract - Posted by Dennis Peterson

Real Estate Investing
1

Posted by JPiper on May 21, 2000 at 09:24:26:

Gee…only $75K per unit??? I hope you’re in California…because if you’re not…this is mighty expensive!

Even in California, paying retail prices with no money down is going to lead to negative cash flow.

You want positive cash flow, buy at a discount or put a large chunk down…or change the terms of the land contract to a much lower interest rate.

Better yet, provide some addition information regarding terms on the land contract, rent per unit, gross rent, etc. Maybe someone will have an idea.

JPiper

2

little or no money down-land contract - Posted by Dennis Peterson

Posted by Dennis Peterson on May 20, 2000 at 23:08:13:

i have an oppertunity to purchase a 16 unit complex,the price there asking is 1,200,000.00. there willing to do aland contract,but iam trying to come up with a way that
will give me a positive cash flow any ideas

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Re: little or no money down-land contract - Posted by Ed Garcia

Posted by Ed Garcia on May 21, 2000 at 12:24:53:

Dennis,

We need more information before we can go any further with your deal.

(1) Describe The Units and the surrounding area?
(2) How old are the units?
(3) What’s the unit mix ( how many 1 br. 2 br etc)
(4) What’s the vacancy factor in the area?
(5) What is the gross income of the units?
(6) What is the vacancy of the units?
(7) What is the NOI?
(8) What are market rents in the area?
(9) Are there any other Units in the area for sale?
(10) If so at what Price?
(11) What are the going Cap rates in the area on multiple units?
(12) Have any other Units in the area recently sold?
(13) If so at what price?
(14) How much does the seller owe on the units?
(15) If there is a loan, is it assumable?
(16) Will the seller carry a second?
(17) Is there any differed maintenance?
(18) If so, estimated cost of maintenance?
(19) How’s your credit?

If you answer these questions, then I can answer yours, with a meaningful answer.
Otherwise, it’s just, What ifs? or hypothetical.

Dennis, I have to agree with Jim. Unless these units are on the beach or in
certain parts of New York, the numbers seem high.

Ed Garcia