Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
We recently purchased a 120 unit value add apartment community and got the seller to finance. This was a distressed asset with 78% occupancy, needing over $500k in renovation. The option was to close with a bridge loan or to convince the seller to be the bank, saving us close to $350,000 in fees and interest.
This deal was an off-market deal that my company put under contract and convinced the seller to finance a construction type loan. We syndicated the down payment and remaining renovation budget as well to make this deal what I think will end up to be a really solid investment.
Real Estate Agent · Oakland, CA · Member since 2016 · 37 posts · 33 votes
8y
Awesome job!
Would you mind sharing what process your company is using to prospect for off market deals?
We are active in Central Arkansas, have established some good broker relationships over the past 6 months and are looking to establish some direct to owner channels.
Would you mind sharing what process your company is using to prospect for off market deals?
We are active in Central Arkansas, have established some good broker relationships over the past 6 months and are looking to establish some direct to owner channels.
Thank you for sharing and inspiring!
We found this through a broker relationship. Most of our prospective deals come from broker relationships and property management companies.
Just got done reading through your blog post for the deal. Bookmarking your BP Podcast interview and subscribing to your Pillars of wealth Podcast as well, just found it by checking out your companies website.
Thank you for taking the time to share your knowledge! huge motivation to a newbie like me.
We have our first bigger deal (46 unit) under LOI. Also off market from a broker relationship. Great neighborhood, tons of upside. But if our cap ex comes in much higher than expected, or other assumptions are proved incorrect during due diligence, we will either need to re negotiate price, walk away or find a creative solution. The seller wants to 1031 into a retail property (they have a specific property targeted), but they own the property free and clear (close to 2,000,000 purchase price) so perhaps a small seller second would be possible.
How did you establish a direct line of communication with the seller? and at what point in the negotiations? I am thinking of asking to speak directly once we have established a binding purchase and sale agreement.
The communication has been a bit sluggish so far mediated through brokers, I want to talk directly but also do not want to embarrass my broker who brought me the deal.
Just got done reading through your blog post for the deal. Bookmarking your BP Podcast interview and subscribing to your Pillars of wealth Podcast as well, just found it by checking out your companies website.
Thank you for taking the time to share your knowledge! huge motivation to a newbie like me.
We have our first bigger deal (46 unit) under LOI. Also off market from a broker relationship. Great neighborhood, tons of upside. But if our cap ex comes in much higher than expected, or other assumptions are proved incorrect during due diligence, we will either need to re negotiate price, walk away or find a creative solution. The seller wants to 1031 into a retail property (they have a specific property targeted), but they own the property free and clear (close to 2,000,000 purchase price) so perhaps a small seller second would be possible.
How did you establish a direct line of communication with the seller? and at what point in the negotiations? I am thinking of asking to speak directly once we have established a binding purchase and sale agreement.
The communication has been a bit sluggish so far mediated through brokers, I want to talk directly but also do not want to embarrass my broker who brought me the deal.
I would ask to set up a conference call or face to face meeting. The face to face would be the best. Involve your broker in on the conference call or a face-to-face meeting.
I would be prepared. Offer a price reduction and the seller second as options. Your seller is motivated to 1031 exchange so you do have some leverage.