Home » Real Estate Forums » Real Estate Investing » Financing and Credit

Equity Parnet Needed - $25K, $1000/month income, $50k cashout in 5 years

Posted on: Sat, 04/14/2012 - 18:43
Equity Parnet Needed - $25K, $1000/month income, $50k cashout in 5 years

Hello everybody,
I have been a fan of this forum for awhile and have finally decided to join. It has been a great resource in building my real estate knowledge.

Anyways, Here's my situation

I have an accepted offer to Lease Option a 16 Unit Apartment Complex. I have a 5 year option on the building at the price of $525k, Based off appreciation in the area. The complex will be worth $638k in 5 years.

I am just leasing the building, so i don't have any risk of repairs, etc. After all my payments and expenses, the building cashflows $2000/month.

To finalize the deal I need $25k to pay the seller as a non-refundable option fee.

My exit strategy is to continue the lease for 4 years, earning $2k passive income each month. Between years 4-5 I would sell the property, double close, and receive $638k , pay the seller the agreed $525k, and profit the $113k (before fees, taxes, and option payback)

I'm looking for an equity partner to put up the $25k, I would pay 50% of the cashflow each month ($1000) plus 50% of the profit after I exercise the option in 5 years (around $30-40K profit each)

Please message me right away, Hopefully this could be the first of many partnerships
Travis

__________________

Hey, I am a real estate investor. I buy/sell rental properties in Iowa/Minnesota. Im always looking for new techniques to use, and new people to network with.


Posted on: Sat, 04/14/2012 - 19:00 #1
Need a Profile??

Travis, I think that if you filled out your profile you might get more answers or more individuals interested. Also, how do you know with certainty that the property will be worth $638 in five years? The reason why I am asking is because I might be interested but I would like to see the building, research the area during the day and at night. What is the vacancy rate? Who is responsible for the repairs and up to what amount will the present owner pay?
Interested but have many questions
Thanks
Raymond


Posted on: Sat, 04/14/2012 - 19:42 #2
Travis,

Please PM me with the details of this arrangement including the city and state so I can see if this is in one of my states that I do business. Specific street address is not needed. I would also like you to PM me with your email address and phone number so I can follow up with you on this matter.

__________________

Always Looking to Acquire Houses | Always Looking to Amaze Investors