I have been listening to a podcast about creative financing and he talks a lot about making a bad deal work based on the terms and that price doesn’t matter much. I wanted to see if someone saw an opportunity in this deal that I don’t:
Side by side duplex in fair condition, rent ready
Owner interested in selling to invest in a DST and leave the landlord game. Not motivated and doesn't really have interest in being the "bank".
FAIR MARKET VALUE about $250k
He’s offered it to me for $235 (avoiding realtor fees)
Gross rent currently $1400 (maybe room up to $1500)
Taxes, insurance, utilities: $480
After capex, repairs, vacancy, and management I don’t see any cash flow.
Is there a creative offer you’d make to make this deal work?
I look forward to hearing your ideas!
No. Creative deals require both parties benefit from the deal. That scenario is only beneficial to the seller.
@Derek Dombeck 👍 thank you
Offer to buy if he will lend back the money at the intensest rate he was gonna get out of DST. Buy another property with his money.