BiggerPockets

The owner wanted to do a seller carry for 200k with a 8.5% interest rate and Sale it for 300k.

After a month of the seller bluffing about all the buyers they had we finally got it done. Here are the details of final terms:

Sold for 100k Cash
Seller has 30% interest up to 300k (100% vacancy will be a 450k value)
No Monthly payments

Things I will do in the next month to get 100% full

I am going to evicting all tenents
Put about 50k of repairs and upgrades
Interview for a property management company

Rich,

Thanks for the suggestings

1. It looks like it has a bad history because the owner and the management is bad
2. I have a couple of management companies I will interview on Friday
3. There will be no loan
4. 50k is a educated guess with 10% inflation
5. I want my type of quality of tenents instead of section 8
6. My property management will handle day to day functions but I will go out there at least once a month. Vegas is a 2.5 hour drive from me.

This is my first commercial property but it fit my criteria

P.S. it is N of the Airport. And sure you can

Anthony,

This is what the creative side of this business is all about.

Yes... you have your work cut out for you, and yes there are pitfalls along the way... but you go the owner to share in some of these risks.

Your job is to build the equity through upside management and then enjoy.

One question... when do you have to take the seller out of the deal and under what terms?

Keep us posted.

Pete

As Rich and my new friend Peter said, keep us posted. I'm interested in knowing how it goes down for you as you progress as well.

to help clarify your answer to Jon, you're stating that once you 're-sell' the property for a profit the seller will get 30% of the 'gross' profits with a limit of 300k? is that right?

If that is right, how will you assure that you will once you do and if you do get it to 100% occupancy that you will be able to sell it for 450k?

Anthony- Prove me wrong. I hope for that. I'm still nervous for you on this deal. You know it best. Make it work!!Rich.

I'm sorry Anthony, but I just have to reply. I was going to let it go, but this info is being read by a lot of newbies and they need to understand a couple things.
1.Units are going to be 100% vacant before they'll be 10%. (you said you're emptying them).
2. Your expenses will NOT be 27%.
3. Your NOI isn't close
4. Your reair estimate is a guess.
5. You have a partner with different goals

As I said. Prove me wrong. Come back and keep us posted. I've owned thousands of units and I stick to my original concerns. I'll try to not reply again, but your #'s are in question, imo.. Rich, just trying to keep it real.

Rich,
I will keep you updated. Thank you for the wisdom

I will let you know :-)

Rich... this is great insight...

So those new to this game what Rich is saying is that of the expenses to operate this building in the first year... not including the cost to perform deferred, required maintenance will be $34,560.00 and the NOI will be $23,000.00. Which doesn't do much for the value of the property.

Anthony, you have got your work cut out for you. What can all of us who jumped in do to help?

Pete

Why you vacating the whole property anyway?

Is this your first multi unit apartment complex Anthony??