I have been presented with a heck of an opportunity and I am hoping I can get some advice here.
I am a REALTOR and recently listed a group of 8 apartments. Very nice, built in 1998.
The owner of the property is a friend of my family and has recently offered me a killer deal on purchasing the properties. Way to good of a deal to pass up. At the moment, my credit score is poor and really dont have any cash to put down. I do have a family member with excellent credit score that would be willing to help me get established. I am looking for some advice on how I could still make this deal happen. If anyone would like to help a sister out and help guide me in the right direction, I would greatly appreciate it!
A little more to add to my question. Appraised at 440,000 in 2011 and purchasing it at 240,000. Annual expenses about 13000 ( tax and ins). 8 apartments rent for $550 each 7 of 8 rented
@Amanda Smith - you're right, this does sound like a great opportunity! Connections like this surely make a good deal easier to come by.
I would first find out why the owner is selling and if any major repairs need to be done to the property. The numbers seem like a fantastic investment.
What about owner financing? Since he/she is a family friend, the owner might be willing to go this route. This is simply where you make payments to the owner instead of a bank or lender. Of course, you would negotiate the down payment, interest rate, monthly payment amount, length of term, etc.
Sounds like you need a credit partner AND a cash partner to do the deal conventionally... Is owner willing to hold the note with very little down being it is acquaintance? Probably not but worth a shot.... You can get very creative - justs depends how open minded the seller is
Other options are to being in a couple family members on the deal who have the credit and cash needed. Or can you borrow against a retirement account for down payment?
You have to ask yourself what will it take to get access to funds needed for down payment and or closing costs? If you borrow from family members how quickly can you pay them back. If you bring them in on the deal than the profit is split and return goes down.
How bad is credit? There are loans available for less than stellar credit
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