Updated over 6 years ago on . Most recent reply
Pitching an owner for private financing a multi portfolio
Good afternoon BP,
I have a potential purchase where I offered the owner to buy two of their apartment buildings.
I can secure financing for it but their concern is paying taxes and finding something else to 1031 into. I sort of winged it and pitched them to instead be my bank. Its a 2.7 million purchase.
My plan was to put down 20% as my lender lets me do.
The seller at this point got pretty interested and we are sitting down next week to work out numbers and discuss further. I know they have a loan balance of 1.4 on the property so here is where im stuck. I originally told them we could do 20% down with a 5% fixed 10 years (about 3% over libor) similar to what bank would do for me. I advised them to consult with an attorney and their CPA so they could be better informed and if they have any concerns we could discuss.
So my question is : how do i address their existing mortgage with my offer?