Buying multi family units with lease/purchase option.

[Robin Ferrier]

Hi all,

out of curiosity, has anyone obtained multi family units using lease/puchase options. Anyone gained control of apartment blocks with LO s?

What were the main issues for you and was it successful. What made it successful or if it didn't work out, what was the fatal flaw. Do you have to own to profit from multi family properties?

I can imagine that there will be the suggestion that if a seller is willing to hand over his 20 unit to an investor on a LO then it has to be as rough as a monkeys a..! Or does it? I'd love to here from any who have done it, nearly done it or those that thought it all through and didn't do it.

Thanks in anticipation.

Robin

:D

[Bill Gulley]

Picked up 24 units with an option and master lease and pledged equity in other property with a financed option price. Then formed a LLC and transferred the contract to the LLC. Seller got a divorce, admitted one seller as a single person to 12 units. Admitted another investor and later spun off the other 12 units. The Seller bought me out three and half years later. Nice properties, no problems, old seller never left the office as manager. I made a spread, took tax benefits, a management fee with the other partner, a sale profit from both.

That is not true that a property has to be a dump. There are all kinds of deals that come about due to divorce, bankruptcy, death and estate settlements. It's finding a property, then finding out the real reason it's being sold, what the problem is, solve the problem, make money.

Another deal was an option, possession and master lease on three properties held by another investor. All properties were free and clear. Option price was basically making some repairs (contractor did it, I paid for it, but not much). Found a tenant who wanted to buy, changed my L/O to a Contract for deed and assigned it. Sold the other two properties retail.

This situtation came about because the landlord wanted to retire and not fool with properties, one of the main marketing methods I used. Usually CFDs.

It's recognizing what the problem is and knowing what strategy to use to solve the problem. Good luck!