Commercial Real Estate in family Estate sale

2 Replies

Looking for some wisdom here....

There’s a great deal on 64 units where I invest but it is part of an estate sale.  The owner deceased and the family is selling the real estate as part of the estate sale.  I’m a couple hundred thousand short of being able to get financed for this MM purchase, so I considered writing a seller finance offer with a few hundred thousand down.  My realtor says they won’t be able to close the Estate if it’s not a cash or traditionally financed purchase(getting them all the money at closing).  Any info on this?  My understanding is that the down payment could be dispersed among family then they would have to wait for my balloon 3-5 years later for the rest, is this true?  Or would the down payment be held in the Estate or Trust until the note was paid in full?

Thanks for any advice or information!

I can't speak to the estate feasibility question however, getting all the family to agree would likely be difficult. I would suggest partnering up with other investors to get the deal done, or syndicate it via friends, family, etc. as it appears you're close in terms of funds.

Typically I would be confident with making an offer and raising money but I’ve been told that the sellers are taking the best offer on Friday at 5p.m it’s currently Wednesday so I don’t have the time to make that happen.  

I agree it’s very unlikely the family would all agree on a contract sale compared to cash but, that might be the only reasonable offer I can make.

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