Best way to finance a deal
Recently was brought a deal that may make quite a bit of sense for my partner and I. However, we weren’t actively looking for anything at the moment. We are letting a few things settle and trying to build cash flow at same time. Then out of nowhere an investor called us with a decent size pocket listing. I guess he was brought an offer and knew we had an interest if ever the opportunity presented itself. He’s hoping to 1031 the proceeds from this sale into another deal.
We are planning to sit down later this week but I’m thinking his figure will be 2 million or more based on previous conversation.
Need thoughts on best way to approach this. It may not work but if there’s a way I’d imagine someone here in the room can answer as to how it could.
Thanks!!
Most Popular Reply
@Andrew Pfleger I see, well if he's not in a tight spot timing wise then you don't have as much leverage, but if the numbers work, the numbers work! Being able to use the 1031 timing as leverage isn't the end-all-be-all of this deal. I'd just be sure to ask specific questions in your meeting about expenses, cash flow, etc. At $2mil +, I'm guessing this is an MFR, so tenancy history and age of capex items and appliances (if not provided by tenants) would be great in terms of hard data.
Best of luck in your meeting, hopefully you and your partner can make this deal a success!