Thanks for taking the time to reply…
I will find out all incoming and out going payments
on wednesday…
What I was really after on this was, how would the
experts close this deal…
Owner is willing to carry note and wait 6 mths for refinancing on my part and he stated he is serious
in selling… Thats what I have learned so far.
I am thinking of offering a lease purchase or
agreement for sale. If I go with agreement purchase
I would have to pay the 2% tax to government right
away and thats close to $26,000.
In a nutshell I have found a person who wants to sell
and I want to buy, and doing so with little money down
is the tricky part for me…
I ran into this ad while looking through local paper…
30 UNIT apt bldg, XXXXX st XXXXX,XXXXX
asking $1,399,000. your city Tel: xxx-xxxx…
I phoned the number on the ad and did a little f.a.q
Why are you selling - Want to pull equity out for new construction.
Is there a current mortgage - $880,000
For the monthly expenses, I have to wait until next wednesday.
As far as what it is worth … I think $1.5 million.
Willing to offer $1.3 million…
When I was talking to the owner. I asked him point blank questions…
Would holding a note be a problem. He said no problem.
Would you be able to hold financing for 6 mths again no problem…
This is all I know for now… for rent I think they are
all 1 bdroom apts, renting for $600 each that is average rent for the area.
I should also mention Im in Canada. Current rate is 8.55% for 5 yr term. 7.3% for 6mth term.
I am hoping some of the deal makers here can help me out
on this and or share with me what they would do to make this deal…
Re: What would you do? To make this deal work… - Posted by phil fernandez
Posted by phil fernandez on January 29, 2000 at 08:16:36:
Taking David’s numbers below, all you could pay for the property would be about $975,000 to achieve a cap rate of 12%. In my world anything under a cap of 12% is a marginal deal.
You will have to do your due diligence and get and verify all of the expenses including a reserve for replacement.
Another question. How experienced are you with a property of this size.
I dont think the owner will take $975,000.
He owes $880,000 and $1,500,000 for retail price
is not out of line.
As for experience in this kind of sized property.
None.
To date I have not done any deals. I have one in the
works right now for 1bedroom apt. But, the owner
turned down my lease/option. She is leaving the country for good and wants all debts paid… I have a
buyer in the wings for it. He is at the bank now applying for a pre approval mortgage… So I will
have to gain control over the apt in some way. Dont know which way is best, yet.