Posted by Bill Hebert on August 17, 2007 at 13:04:29:
There are several approaches you could take: 1) get them to sell it to you subject to their existing mortgages and have them make the next 2 or 3 monthly payments; 2) Do a joint venture with them and have them pay all the bills and then share the profits with you; 3) bring in some equity partners to fund you during the 2 or 3 months of negative cash flow. The sellers are in “trouble”. You can solve their “problem”. That puts you in the driver’s seat when you negotiate with them.
Posted by crechicago on August 08, 2007 at 12:41:43:
I posted this on the main board before I realized there was a commercial rei board. I have located a multi-unit out of state. Recently rehabbed. Owners are very large and just want out because of other properties they own. Problem is that they are only 50% occupied because of a very poor management company.
They are willing to let me step in and get the occupancy up and then put together the financing. Asking price $500,000. Current rents over $9,000 a month. Rents once full approximately $18,000.
Problem #1: Because of some personal problems I don’t have the money to step in and get it going. Cost of marketing, property management and personal income for lets say 90 days.
Problem #2: How do I structure this to protect myself during the transition time of filling vacancies?
I need a real investor to help me structure this deal. Can someone help? Thanks in advance.