Looking for 5-20 unit multifamily with owner financing... HELP!!
Hello everyone!
I'm currently in a strange position and am needing to be creative to achieve my next real estate goal. I'm about to start looking for a multifamily (5-20 units) in the Pensacola, Florida area but I have some constraints and therefore need some specific advice please. Here are the pro's and cons of my situation:
Cons
1. I've just finished graduate school and have not had a W-2 for several years
2. My only provable real estate experience is a single family buy and hold that I bought 8 months ago. It was a fair deal but not great, just a way to get started.
3. I am new to the Pensacola area and my network there is basically nonexistent
Pro's
1. I will have approximately $50,000 saved to invest in this deal
2. I bought my first deal with owner financing so I have some experience in that regard
3. I will have the willingness and time to make this deal my baby. I plan to spend night and day working on this property until it is ready for a cash out refinance.
So I'm am planning to contact many multifamily agents in the area and telling them exactly what I'm looking for but I'm not sure how likely it is that an agent will bring a noobie investor an owner financing commercial deal. I'm also planning to do some yellow letters but was thinking about using a more professional, detailed, and honest letter than the standard suggested format. Would it be a bad idea to send out a bunch of mailers to multifamily owners in the area that own their properties free and clear briefly explaining to them my situation? Any suggestions on how my mailers should look to find a potential seller? Any suggestions on finding a deal that will meet my criteria besides going to the local reia's and emailing agents an introductory letter describing what I'm looking for?
I've already decided for sure that my next property will be a value add commercial multifamily so please don't try to talk me out of that. And no, I don't plan to use my masters degree to get a 9-5. I plan to continue flipping cars for cash flow and looking for this next deal until I find it.
Any and all advice will be greatly appreciated! :)
Jason
Most Popular Reply
It might be a little tough getting a loan on a property that size from a commercial lender without W-2 income. It is possible, but may be difficult. I would suggest you find a partner that has the W-2 income. I am sure there are plenty of people with income and don't have enough money for a down payment and that keeps them out of the game.
Good luck!