OfflineWanted to share with everyone this deal since it is my second & third deal at the same time and with none of my own money!!
Retiring apartment unit owner wants to sell his several buildings, which are not in the best of shape, but have great positive cash flow;
Was selling 2 separate buildings with 11 units total for $285,000.00 and the NOI calculation for value was more in the $300,000.00 range. Wrote up an offer that described what I would need to do to the property and went in with $250,000.00, $5,000.00 to be paid by seller for closing costs and he owner finances my 20% down payment. To my surprise he accepted and after inspection, I requested an additional $10,000.00 at closing for repairs and he accepted, so at closing I will own 2 more rental properties with positive cash flow of $1500/month and a check for $10,000.00!!!!
It can be done folks, keep the faith.....2011 is going to be my biggest year in real estate yet!!
Luck is when Preparation crosses paths with Opportunity!
How are you financing the 80% if seller is financing 20% deposit = 100% What's the banks take on that sense you have nothing in it.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
I deal with a bank that always wants 10% in the game regardless of owner financing, but found another bank that was willing to finance the 80% portion as long as the appraisal comes in, which should not be a problem. So to answer your question, need to find the right bank as each one has their own rule book.
Luck is when Preparation crosses paths with Opportunity!
Great going on 2 and 3. I new you were busy behind the scenes. Good deal...Jan
Thanks Jan....
Got lots of work to keep up with you high bar setters....
Amazing walking away from a closing with a check for $10,000.00!! Never thought it was possible...but DG members like yourself help us keep the faith!
Luck is when Preparation crosses paths with Opportunity!
Congrats...was this a FSBO or listed in the MLS?
Barbara
This was a FSBO....not listed in MLS, less competition!
Luck is when Preparation crosses paths with Opportunity!
Congratulations, that is a great deal you got!
Would you mind sharing how/where you found this FSBO? Was it listed somewhere or did you personally ask the owner if he was looking to sell, etc?
Also, would you mind sharing which bank you used that allowed you to have the seller carry back the 20% down payment as long as the appraisal comes in?
Thanks for such a great story,
Dave
Sounds like you're off to a great start. Keep up the good work and I wish you much success in the future.
Rick
Rick Merritt
Trident Realty, LLC
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That is one sweet deal. I really like the story and am now motivated to try something similar. Sounds like a much easier way to build cashflow rather then doing it with 200-300 per SFR.
Congrats man
Don't Count the Days, Make the Days Count!!
Thanks for all the comments, nice to hear that it generated some interest and ideas for your own personal opportunities. The bank I'm using for the 80% is Peoples formerly Merrill Merchants.....
And I've built a relationship with the investor as I purchased another property from him a couple years back and fixed up the apartments. Kept an eye on the movement of his additional properties (no movement), so figured it was time to take advantage of a motivated seller....he also owed very little on these properties making him that much more flexible with pricing and terms.
Good luck....
Luck is when Preparation crosses paths with Opportunity!
That is a very nice deal. Keep up the awesome work, goes to show once again it sure can be done! Congrats
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Retiring apartment unit owner wants to sell his several buildings, which are not in the best of shape, but have great positive cash flow;
Was selling 2 separate buildings with 11 units total for $285,000.00 and the NOI calculation for value was more in the $300,000.00 range. Wrote up an offer that described what I would need to do to the property and went in with $250,000.00, $5,000.00 to be paid by seller for closing costs and he owner finances my 20% down payment. To my surprise he accepted and after inspection, I requested an additional $10,000.00 at closing for repairs and he accepted, so at closing I will own 2 more rental properties with positive cash flow of $1500/month and a check for $10,000.00!!!!
It can be done folks, keep the faith.....2011 is going to be my biggest year in real estate yet!!
....Congratulations on your deals. Way to go! You never know how motivated a seller is and the more offers you make, the more deals that can come through. Good luck on your future deals. Happy holidays! Believe and Achieve!
- Joe
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Congrats Philip,
Like your story and your efforts. You were prepared when you found the opportunity.
Merry Christmas to you and your family.
TY
Yesterday is history, Tomorrow is a mystery, and Today is a gift...
Ethel Griffin
...So don't throw away a gift, do it today as tomorrow is not promised.
What a shot, it only goes to show that anything is possible. Congrats.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
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"In all things, wait on the Lord."
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Very nice job. It never ceases to amaze me the deals you can find if you just keep your eyes and ears open. Build a network and the deals will flow. Once again, Congrats.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Excellent - I am new to REI and have so much to learn. I appreciate the positive messages and motivation offered by others. Thanks
I am starting out as an investor and I am only wholesaling. To see that this is only your 2nd and 3rd deal - creative financing, cash back at closing, and Positive cash flow is just Amazing!! Did you attend the Success Academy or the Edge?
Excellent job, and Happy Holidays!
My DG Journal/Journey - http://www.deangraziosi.com/real-estate-forums/investing-journals/65333/...
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you; plans to give you hope and a future." - Jeremiah 29:11
Success is always to be found on the other side of FEAR! Don't stop, push over the mountain to success waiting on the other side!
This is AWESOME!! It is so exciting when everyone shares their successes! That is a sweet, sweet deal!
Can't wait to see 4 & 5!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Just read some of the additional comments and all I can say is that we are certainly blessed to have this online network of people refusing to accept mediocrity!!
We are here to make a better life for ourselves and our families...and we can learn from each others successes...a year ago, I would not have thought this deal would have been possible, but here we are and the Commercial lender at the bank called today and said appraisal's came back good and things will move forward after christmas break.
Have a great holiday everyone and thanks for taking the time to read and comment, makes me excited to find another...
Luck is when Preparation crosses paths with Opportunity!
Merry Christmas and the Happiest of New Years!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
What is a FSBO im a newbie just trying to soak up some valueable knowledge.. And also you said you will have 1500 positive cash flow i was wondering if that was a typo and if not how did you get to that number thanks...
Mr. Monopoly Man...
FSBO...For Sale By Owner
$1500.00 positive cash flow comes from
Total Rent = $X
Total Expenses (heat,electric,maintenance,management etc) = $Y
Mortgage Payment (Principal+interest) = $Z
X-Y-Z = $1500.00/month
Luck is when Preparation crosses paths with Opportunity!
What is an FSBO? sorry but I am new with these terms.
Closed on the 2 properties yesterday and walked away from closing with around $13,500.00 from pro-rated rents and the $10,000.00 I negotiated for fix-up costs. What a great maintenance buffer if anything happens.
now the long term plan is to fix up each apartment as tenants move out 1 at a time in addition to changing to natural gas furnaces. This will significantly change the NOI of the units and thus changing the value from $300,000.00 to close to $400,000.00!!! AND it's $1500.00/month cash flow positive as is.....
Luck is when Preparation crosses paths with Opportunity!
Great to hear you've successfully closed!
One quick question - how did you verify the income for these two properties to make sure that it was what the seller claimed and that they positively cashflowed 1500/month?
Thanks again for this thread, I have learned a lot!
I just had him verify by providing copies of tax returns over the past couple years....
Luck is when Preparation crosses paths with Opportunity!
Isn't that great to get such a jump on your real estate career?
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus