NEWBIE Needs Help with sweet deal - Posted by Jason

Posted by James Harris on March 04, 2000 at 24:10:34:

This sounds like a job for a PACTrust!!! Jason, It seems like to me that the best vehicle for this venture is placing in a trust(PACTrust). This is where you the investor “sells” the property to another for a certain amount of money, the potential buyer pays a consideration fee, to you. Then you set up the trust ina way that the one that you are buying the property from is getting paid by the one that you have sold it to and all you do is kicking back and recieving a check every month. However, you will need to get with Bill Gatten about all the particulars. I hope though that I may have given you a ROUGH idae on how it works. Have a good one.

NEWBIE Needs Help with sweet deal - Posted by Jason

Posted by Jason on March 03, 2000 at 20:09:54:

First Off, i LOVE this site, i wish i found it before your convention, but better believe ill make the next one!
OK Gurus, heres the deal
6000 sqft commercial space, and a rental apartment upstairs.
Plenty of Parking in front and back.
County appraised the value of protery at 165K
The 6000 area is currently being rented at a measly 500/month, and the 1 bedroom apartment for 400/month
He is very ill, and cannot maintain it, so he is VERY motivated. He said" I just want out, thats all" ( this is like out of a real estate book!!!)
He reduced his asking price to 125K
Theres an 80K loan, and thats it. He doesnt want any money down.
He said he likes the idea of cash flow, but doesnt want the prioperty, i was thinkin of offering to lease/option from him, for $$900 and have 50 or so bucks a month towards the purchase of it. I can easily raise rents, or break up into smaller units for lease. Maybe Flip it??
PLEASE, i need some seasoned advice on this one! This could be my first good deal!
Happy Hunting,

looks good - Posted by tang-0-rang(co)

Posted by tang-0-rang(co) on March 04, 2000 at 13:03:25:

jason, Looks nice on the surface, find out if there are any other leans against the property, unpaid taxes, and such like this. He may be too motivated for more reasons than he lets on. Also how about a PacTrust…, The Lease/Option sounds good but ask for more rent credit. I would go with 50% or so, and see his reaction, the worst he can say is no…right, then bring it down a LITTLE at a time. One more thing to add, find out what the payment on the 80k is, agree to take over payments, releasing the seller(a wrap might work well)from the propert, which is filling the seller’s needs, win/win.
limitless possability.
do your homework
Todd Williamson(co)