First Deal - Complicated - Need Some Suggestions.

1 Reply

Here is the deal - Package deal 10 Single Family homes with 12 units total.... the seller is asking $580,000 for all homes.

Monthly Cash Flow is $8750

Yearly taxes - $15135

Motivated seller, but not going to give it away....

Questions - How do finance something like this?  Seller said there would be two closings, because he has two bundled mortgages.

Basically looking for a creative solution to get this deal done....he is open to negotiation on the price....I was thinking of trying to get ONE loan for the 80% LTV, and have him seller finance the rest, but I think he owes $470,000 on the property.

Other option would be to get a private investor to put money...any thoughts?

Originally posted by @Chadd Naugle :

Here is the deal - Package deal 10 Single Family homes with 12 units total.... the seller is asking $580,000 for all homes.

Monthly Cash Flow is $8750

Yearly taxes - $15135

Motivated seller, but not going to give it away....

Questions - How do finance something like this?  Seller said there would be two closings, because he has two bundled mortgages.

Basically looking for a creative solution to get this deal done....he is open to negotiation on the price....I was thinking of trying to get ONE loan for the 80% LTV, and have him seller finance the rest, but I think he owes $470,000 on the property.

Other option would be to get a private investor to put money...any thoughts?

Hi Chadd,

You might need to do some more research on this possible deal. First, in order to assist you in looking at the economic on this deal you'd need to provide much more information so that the NOI is a known commodity.

Second, getting to a point of understanding how you can finance this deal would be to also understand how the seller must close this deal. What specifically does he mean "two closings"? And, what is meant by "two bundled mortgages"? 1st/2nd combinations, wraps he used to buy these?

Third, you might provide us with what you think the value of the properties are after you've bought them from the seller. Is there upside in buying these? Or are you simply buying them for their existing cash flow.

All this cumulative information is important when trying to figure out whether or not the opportunity you are looking at is a viable investment, and how then the finance it if it is a good opportunity. 

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