top heavy

3 Replies

Hello to all the bigger pockets fans.  I am a new member and new to the podcast so I thought I would ask other professionals for advice.  Quick back story I am not new to buy and holds and have several properties with a clear title.  But as I continued growing in my home town another investor called wanting to unload two duplexes and three houses so he can have capitol to invest in other means.  That amount of money doesn't  bother me initially but I have already set things in place on other investments this year.  My question is these  appts. are a decent deal but not great and I have tried buying them before with no avail.  But now they are for sell and I'm not sure weather to over leverage myself with my primary lender, forget about the deal entirely, or come up with  crazy lending strategies that might have a safer venue.  The banks will loan and I do have enough capital but its more than I normally take on in a calender year.

A little input would be nice

P.S.   Owner financing is not an option. 

Mr A needs capital for other projects.

Mr B likes A's properties but timing is inconvenient 

Enter C. If C puts up the capital and you split the cash flow and/or appreciation, you can still exploit the opportunity. Let C get the loan, and you manage, for a fee.

An endless number if option if you are willing to let go of the notion thst you have to receive all the benefits. 

People who cannot find deals are jumping all over each other to find property deals but can't. You have several deals but have other plans. Sounds like a "quality problem".

I have mulled over a similar concept but you are right I have to accept and let go of 100% of benefits. There in lies part of the problem. 

If the other investments will out-perform these properties - then it may be best to pass on the properties that are being offered to you.  Or name a price where the deal makes sense for you.

This might be a chance to strengthen/build your network rather than get financial gain.  Do you know investors(or even potential investors) who would be interested in these properties?  Do you have an agent that you like to work with?  Giving other investors a good real estate agent a heads up on this opportunity will hopefully come back in the future.

Also it may not be all or nothing.  If one or two of the properties are more appealing to you - maybe you could get those and pass the rest on to another investor or to an agent to list.

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