Going from No Cash to Cash

[Daniel J.]

I was evaluating a deal and they ended up switching to needing an all cash deal because the owner died and there are no financials for it, so banks will not finance it. I did contact my mortgage broker to see if there is an option through them, I am waiting to hear back. The purchase price is 399k.

I am working with a partner and we have access to 150k, but not 400k. Due to it being my pre first deal and not having a huge network yet, I don’t have other investors lined up. It could be a really fantastic deal.

Am I out of luck as it were or I am missing a place I could get the cash?

Thanks!

Daniel

[Thomas S.]

Going off market rents is useless. Without esstopal letters or leases you have no idea what the tenants are paying in rent, who is paying utilities, how long the leases are, whether tenants have any special deals etc. etc. You should run away from this deal or dig much deeper before you commit. 

Take though time to dig and get the details and the bank will finance. If the seller is not willing to dig then they just cut the value of their property by 1/3.