retiring landlord - Posted by Mark VA

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.

retiring landlord - Posted by Mark VA

Posted by Mark VA on April 21, 1999 at 10:35:43:

Stumbled onto this site about 10 days ago. What a rush of ideas and encouragement. Thanks to all. I’ve previously bought three rental homes with no money, that’s not too hard if you’re constantly looking. But I’m now trying to get my credit in order so that I can qualify for loans to
make cash buys on property. It seems you get the best buys that way.
Anyway, here’s what I came across yesterday…
A retiring landlord with 20+ homes for sale. He is willing
to sell at 80% of appraisal on each, giving us some instant equity. OK so far. I’ve been approved to get loans for 70% of appraisals, and with partners may be able to raise that
to 75-80%.
What I’m wondering is, is there a way to do this deal if I can’t get financed for the full 80%; maybe getting the seller to take a 2nd for part of price? Additionally, would
it be possible to pull out a little cash at the closing so that we would have some additional funds for light rehab?
Seller is paying all closing costs and there is no down payment on the properties. Hope this post isn’t too long, and thanks in advance for any suggestions.