Structuring an Offer using Creative Financing

[Ronl Nichols]

Hello Everyone,

I have a pocket listing for a 20 unit apt complex. I have done my analysis on the property and discovered that it is a good deal. I would like to make an offer but not sure on how to do so.

I do not have 20-25% liquid to put down. I am looking for creative financing advice. Asking price is $639,900. There is debt on the property for $400k which is assumable at a 30 yr am/7.5% int. 

Any advice would be greatly appreciated.

Thanks

[Steve Kontos]

@Ronl Nichols

First off the interest rate on the assumable debt is way too high.  You can slice that down substantially with today's rates (unless your credit is in the dumps).  In regards to Seller Financing, I always ask the seller why they are selling?  I ask this important question so I can see if their situation would actually benefit from or even entertain Seller Financing.  Depending on their answer, I then figure out the best type of financing in which it is a complete win/win situation for all parties involved.  Why don't you ask them this question and let me know.  I can then give you a more detailed answer.