Posted by Evan on April 08, 1999 at 22:34:46:
Rob,
Have you tried going through a commercial broker(there are tons…including LOTS of commercial hrad money lenders), and in the meantime finding a property that fit your current broker’s criteria. You could buy a property well below FMV at 100% financed and then, if you needed to, a substitution of collateral.
Just some ideas.
You may want to post on Cashflow side as well.
Six-unit deal, need help on offer - Posted by Rob Henry
Posted by Rob Henry on April 08, 1999 at 21:58:30:
I am already prequalified for a 100% investment loan from a broker but it is only for 1-4 unit properties. The property I’ve found is a 6 unit and it makes great sense, the owner has free & clear title but has fell ill, wants to unload it. The realtor says he has turned down all seller-financed offers so far, so that’s probably out of the question. He’s asking $160,000, the rents total $26,880/year and his expenses last year (util, tax, ins) were $8130. The realtor says he would rather have an all cash offer (don’t they all?)…what’s the best way to go about an offer on this property? Thanks.
Re: Six-unit deal, need help on offer - Posted by Jim_MA
Posted by Jim_MA on April 10, 1999 at 19:53:41:
Rob,
Running the numbers provided for asking price, income and expenses i would not offer more than 120K for this property just based on the numbers. I would adjust this number down for deferred maintenance and possibly upward for any clearly evident upside potential from rental income increases.
I generally make 3 offers on each multi- one seller carryback 100%, two seller carryback 25%, three all cash new financing. My lowest being cash-new financing offer. I get my multi unit financing from local small banks paying prime + .75% to prime + 1.5% and maximum of 80% LTV. I just recently began using equity in my other properties as my source my down money and closing costs.
Re: Six-unit deal, need help on offer - Posted by Jim IL
Posted by Jim IL on April 08, 1999 at 23:31:53:
Try multiple offers.
Perhaps an all cash offer at a low price and then a seller partial carryback with a higher price.
Maybe the seller needs some cash, but not all.
ASK ASK ASK.
You’ll never know until you do.
And find out what the seller NEEDS not wants.
The agent cannot really help you with this, every agent I’ve talked to swears the seller “needs all cash”.
Instead of just submitting offers through the agent, try to meet with the seller and the agent.
You may just win him over with your Charm and creative thinking.
Just my $.02
Jim IL