BiggerPockets, The BP signal is going up in the sky! I need help!
I have a few questions for you. I was approached today by a friend who told me about a 12 unit apartment/town-home mix that is up for sale by a highly motivated seller for 299,999. I also have been made aware that that pricepoint is very flexible. My only issue is that the seller wants proof of funds up front before any serious discussion occurs.
So I ask myself, do I try and talk myself past that and get the property under contract anyway?
Or do I try and shop the deal to the investor previous to it being under contract? I am not sure the best way to go into this.
The proforma numbers look decent (I will post them below), but I am unsure how to proceed at this juncture. Any advice or ideas?
Pro forma Report
Two Bedrooms(2) 750
Three Bed rooms(4) 1900
Four Bedrooms(6) 3450
Total Income Monthly 6100
Total Gross scheduled Income($/per Year) 73,200
Operating Expense: 12,575
Net Income 53,885.00
Unit Price 24,999
Asking Price 299,999
Cap Rate 17.9
Wholesaling an investor's property isn't the easiest to do. Prob be best to just talk to him and tell him you are a wholesaler with a good client list. Ask him for his bottom dollar under the condition they have the proof of funds he wants. If there is enough spread for you, so be it. If not, give it a few months and try again if he hasn't sold them.
If you have 20 -30% to put down, then you can get the funding pretty quickly. You can get a letter of intent for the seller from a commercial lender.