I am strategizing on ways to acquire a new property. Here is the lay out. The property is a multi-family with an asking price of about 80K. The rents are currently $800 for one unit and $630 for the second unit, both units are occupied. The taxes are about $3,000 per year. The owner stated that three properties in different cities are on one loan. I am wondering if I can (1) assume the loan aka take over the payments and pay the owner a lump sum in addition. (2) Maybe I’m reaching, ask the owner to do some seller financing. Or (3) something else creative that I am not aware of to allow both of us to have a win.
Ps: This will be a hold for my team.
I thank you in advance.
Depends on type of mortgage loan many banks don’t transfer loans.
@Hutcherson Yearwood , this property should be able to be broken out from the larger loan pretty easily. That's usually written into these kinds of things.
Loan assumption is another issue altogether. That is typically only done with commercial loans. This being a 2-family and part of a larger package...who knows. Worth asking the current lender if they would consider this.
You should definitely consider owner-financing. Never hurts to ask.
Have you considered making an offer for all three properties?
I would call My lender Bob Forbes! He's been at this for over 25 Years, and his company lends in all 50 states. His website is Welend101.com
Jaysen Medhurst, I have not considered all three properties only because two of the properties are so far away I think I would only be doing a dis service to the families in them.
@Hutcherson Yearwood , it's worth considering. If you're serious about investing, you want them to be under a property manager anyway.
Thanks again Jaysen,
Your advice will make more sense for me later as I grow the business. My m.o. is to “learn how to work the register before I place someone else in charge of it”. I am still learning and improving systems as we move forward.
@Jaysen Medhurst I am not considering a property manager at this stage of the game, for two reasons.
1 I don't believe in putting someone in charge of the register before I know the ins and outs first.
2 I am not sure that a third-party have the same interest as my clients and I .
@Muhammad Rizwan I would have bought it outright. The owners claim was that he could only sell all three at once to satisfy the loan. I offered to sign a nondisclosure, to verify his claim. He stated that it's industry standard to do so. I did believe him but yes but, I always have to verify.
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