Posted by Steve-Atl on May 04, 2000 at 08:56:31:
Consider this approach:
Get an option on the entire deal for say $200k with large down payment and balance financed by seller. Find cash buyers for the commercial property (a steal at $90k). Use the $90k as down payment to seller to finance the remaining $110k at a low interest rate. That way you end up with the apartments with no money down.
The numbers above are intended to illusrate a point. You need due diligence to determine several things (i.e. is $90k really a steal?) This approach depends on selling the commercial property quickly, therefore it needs to be a real deal.
Need help with numbers on a potential deal… - Posted by Charity
Posted by Charity on May 04, 2000 at 08:17:57:
I smell a good deal, but now I am not sure what is the most profitable way to go about this. Apparently this woman owns all 3 of these properties. Her agent said she is willing to do a lot of owner financing with a good down payment. First question: when you have no money to put down, what do you do?
The properties are:
4 unit apartment bldg: rents totalling $1200 month with good retal history and 100% occupancy now. Asking $120K but will take $110 if she doesn’t have to re-roof or paint outside.
Commercial Warehouse: 26x74 with 2 offices and half bath. Paved parking: asking $55K
Four Unit Complex: adjoins warehouse bldg and contains beauty shop (rented for $200), 2 apartments (rented for $150 and $130 now) and a 2 room office (not rented now). Asking $60K.
Any ideas on what to do? I’d love to keep the apartments if possible (the 4 unit one), but I need some help on numbers and different ideas on how to present this. I don’t know if she owns them free and clear, but apparently so since she could do a lot of owner financing.
Charity