Posted by Bud Branstetter on April 22, 1999 at 21:08:39:
First I would get an option to buy all 20+. Next I would have a conversation with each of the tenants. Those that wanted to buy I would make out a 1003 and run it by the mortgage broker. Most of those can probably get at least an 80% new loan. Those that can’t I would owner finance and sell the first at 80%. The ones that don’t want to buy I would still sell the note . I would have the corporation buy and sell to me and simultaneously sell that 1st lien note. With the cash I could get out of some of the straight finances I could probably get this all done for zero down. Eventually I would rent to own the other properties as the leases expired.
The expected problem could be that the seller values them more than their real FMV as is. This way I would not need partners or have to do any bank qualifying.
Easy to say, more involved to do.