looking at a 6 unit apt??? - Posted by Russ L

Posted by BobJ (Md) on July 23, 2003 at 14:45:03:

Is it for sale by owner, or listed? At the rates you listed, it has a cap rate of around 15%, which is pretty darn good. Personally, I’d be willing to go up to around $257k for such a property in my area, so I think there’s some margin for you to make a profit. I’d try to get it under contract, and on the contract after your name write “and or assigns”. That makes the thing assignable. Then sell (assign) the contract to your friend for an “assignment consideration” of a few thousand. They give you a check for your effort, and then they go to closing instead of you.

Alternately, if you don’t want them to know what you’re paying for it, get it under contract, then mark it up and sell it to your friend. You just need to find a real estate attorney or title company that can handle a double closing for you. Again, you don’t bring any of your own money to closing, and walk away with a check. The only difference is you’ll end up paying two sets of closing costs with the second approach.

BobJ (Md)

looking at a 6 unit apt??? - Posted by Russ L

Posted by Russ L on July 23, 2003 at 12:45:09:

i was talking to a friend who is intrested in buying a rental uint, he said he was intrested in between 3 to 6 units, so i said i would keep my eye out for him. well
about an hour latter i drove by a 6 unit with a store front for sale.
6 Units + store front
(3) 3 bed units - rented $650 (each)
(3) 1 bed units - rented $450 (each)
store front rents for $750 curently empty

Asking price is $225,000

How can i structure this, to wholsale to my friend?

Russ L