UPDATE! How to structure this TRIPLEX?? Finance - Posted by Thomas

Posted by Thomas on February 05, 2001 at 12:38:33:

Its just strange language because to be honest most articles simply tease you for the course…
That’s sound business but Im not going to spend my working cash on another course…

I have the carleton sheets course but that is limited too…

How could I do this deal in a normal conventional manner?

UPDATE! How to structure this TRIPLEX?? Finance - Posted by Thomas

Posted by Thomas on February 03, 2001 at 21:03:17:

Ok Here it is so far…

139,000

3 Units, we will live in one of the $650 ones.

2 2 Bdrm 1bath rent $650 (1300)
1 1 Bdrm 1bath rent $575
Total rents 1875

Say we pay 400 am month ourself instead of 650 makes our
total income on prop to be 1625

Utilities PAID by current owner per month average 300 and its in the leases that he will pay them… (Plan to take off lease on renew time 8 months away)

Fire Insurance 300/yr
Alarm Service 300/year can be paid by tenants
County Taxes 1389/yr
City Taxes 1087/yr

Vacancy rate is ZERO for the past 5 years…
House looks to be in good condition… Could use cosmetic work…

Non-Assumable Mortgage 90,000
and Owner will carry remaining 49,000, but we arent sure about closing or whatever…

We havent submitted an offer…

How can we structure this so that we can be no more than 2,000 out of pocket? (Thats ALL we have!)

If anymore info needed let me know ill post quick…
If you want to finance this for us… EMAIL ME Im in Memphis, TN…

How to structure this TRIPLEX?? Finance - Posted by Bud Branstetter

Posted by Bud Branstetter on February 03, 2001 at 22:42:34:

What you are telling me is that the owner doesn’t want cash. But you don’t say what terms he will carry. You sould be able to wipe out his non assumable note with the sale of an owner financed note. But why would you want to do that. Appraisals, title insurance, closing costs.

You could lease option it from him. But then you couldn’t depreciate it. If you did a performance mortgage you would be safer on getting title. You could buy it on contract to get the depreciation.

Of course the way I’d do it was in a PACtrust. He could keep the depreciation. I would ask for a lower interest rate. Probably not much appreciation since it is a premium price. I would get the equity buildup. Sooner or later he would accept a discount for me refing and paying him off. You could probably live there for about $250 a month.

Re: How to structure this TRIPLEX?? Finance - Posted by Thomas

Posted by Thomas on February 04, 2001 at 09:08:51:

If we were to do a wrap around on the house?

If that possible? How would that go since it is a non-assumeable?

Re: How to structure this TRIPLEX?? Finance - Posted by Thomas

Posted by Thomas on February 03, 2001 at 23:30:43:

Well, I don’t know what terms he will carry at all… That’s the question here… Im wondering what I could offer like…
What type of offer should I make in order to only use what I have available?

Ok, maybe I should state that this would be my first deal ever because every single thing you said in your reply besides the first 2 sentences was not only greek, but french too…

I dont have the slightest idea what you what you mean Sale of an owner financed note…
Heard of PACtrust but still it’s still a heavenly word i’ve not touched…

We want to live in this property and want to own it from the start, so I don’t know what good a lease option would do since we would loose part of our money along the way…
Dont know what a performance mortgage is either…

Our financial calcs on it says a normal 110,000 mortgage and him carry balance would mean we would pay close to $250 to make up all the difference as well…

Thanks for replying, I just wish I already had the required knowledge to use the deep techniques you listed…

You have any other ones? For a New Guy ?

Thanks
Thomas

Re: How to structure this TRIPLEX?? Finance - Posted by phil fernandez

Posted by phil fernandez on February 04, 2001 at 08:32:10:

Thomas,

Bud gives you some great ideas of how to structure your triplex deal. The problem of course is that this is your first deal and you are new at this. That’s ok, however my suggestion would be before you dive into a deal, educate yourself. And there is no better place to do that then here.

Read all of the How To and Money Making Articles here. Also read all of the Success Stories. Once you’ve done that you will began to understand how to put a deal together better than you do now.

I would hold off on your deal until you have acquired some of this knowledge. As mentioned Bud above had three or so excellent ways to do your deal for your benefit. Of course if you don’t understand them its not going to help you at this point.

I’m not trying to come across as harsh here. Just trying to point out the problem.