well first i wanted to say that im going to visit my first property this weekend and without the help of this forum i probably wouldnt even be thinking about looking at actual properties. espcially thanks to ryan for anwering about 10000 of my questions.
so the property is a 4 plex with 3 units already rented out. its gai is aprox 16800 ... and the property is only 65000. tennants all pay all utils. i thought it sounded to good but when the seller explained it seemed to make sense. he selling all his real estate to buy his 2nd bar which he says he enjoys running more and hes pretty motivated sell this property to get some money available for that. also apparetly the property is pretty ugly but i see that as a good thing because hopefully with some cosmetic changes i can add some value.
so my question is what are the ups and downs to ownerfinancing. my other question is if seller financing could show anything about the sellers intentions, would a seller have any reason to or to not seller finance a problem property or money pit.. like would he benefit from me foreclosing or is there any reason some one wouldnt seller finance a problem property.
ahha hopefully my queestions make sense but im not sure they do. thanks for everyones help!!
So he's selling this 4 plex for 4 times gross annual income. That sounds pretty good so far. But, what are the NET numbers?
As far as owner financing goes, it depends on whether he's selling the RE to get CASH to get the other bar, or if he just wants to reduce his management hassles.
Everything I sell I seller finance, because I know that I can sell for OVER MARKET by doing that! There are two sides to every deal, PRICE and TERMS. Let me set the terms and you can set the price!
It never hurts to ask for him to finance and see what he says. It will really just depend on his motivation for selling.
Good luck and let us know how this goes.
unfortunately i dont really have enough numbers to make any net numbers but unless theres something im missing i cant see any way this thing wont cashflow with tennants paying all utilities. hopefully when i meet him on sunday and see the prroperty ill be able to get all this info
also the seller said on the original listing that he is offering seller financing so the option is definately there.
the other reason im liking seller financing is A) i have 0 credit b)im not really gonna be able to account where my downpayment is coming from since a familiy member is helping me come up with it.
i cant really see any banks giving me any offers on loans...