Posted by Andrew Smith (Phila) on October 09, 1998 at 08:29:16:
I have done 100%+ financing legally on undervalued, multi family properties that need repair. I simply put down some money to buy the property but get two appraisals for my bank - an “as is” appraisal and an appraisal based on my list of improvements. Once the improvements are done and I’ve stablized the rents at the levels I had projected the bank releases the other funds which more than equal what I initially put down. That technique only works on undervalued multi-family properties that need work. I’d like to apply the same technique to undervalued properties that are simply mismanaged. Anyone have any suggestions. One nice thing with multifamilies is that the owners don’t seem opposed to creative ideas. I’d really appreciate any legal, up front ideas.