All Forum Posts by: Aaron Moore

Currently trying to purchase a 9 unit for $199,000 and the seller is willing to hold a note for $20,000 of the down payment($38,900). What would be fair terms to negotiate to make the situation a win-win?

@Andrew Johnson the listing says there are some long term tenants there...assuming best case scenario that the owner has been out of touch and the property has no major repairs needed, how would you go about negotiating the owner financed part of the down payment? 20% of purchase price is $38,900 and they're willing to finance $20k.

@Andrew Johnson it's a Craigslist posting and won't be available until July 17th so I don't have much info at the moment. 8/9 units are occupied and I too was curious about the rent amount because 2 bedrooms in that area are going for $625-700. What info should I request from the seller so I can have as much info as possible when I start looking for financing?

@Deanna McCormick I agree about the 9 unit so I'll pursue that one. Have you had any experience with the seller financing some of the down payment? I'm trying to figure out how to negotiate terms to make it a win-win scenario.

Any recommendations for commercial lenders in the Bloomington-Normal area? Looking to get a 9 unit and I'd like to try and get the best terms/rates possible.

Looking to purchase my second property and I'd like some advice on which deal to pursue. I apologize ahead of time for this post being a little bit of a read.

Deal #1: Owner occupied 4 unit via fha 203k loan. Property needs a ton of work with 2 of the units being vacant and uninhabitable. Talked to a lender and I'm trying to get pre approved based on these numbers:

Current asking price: $51,900

Estimated repairs: $61,565

Loan amount: $113,465 with 5.125% interest rate

Ran multiple worst case scenarios with the rental calculator and each time I come away with good cash flow and CoC return. The only potential hiccup is the appraisal after repairs and having zero equity/negative equity. The other issue is that the lender is actually closing the program next Wednesday and I have to rush and submit a ton paperwork by tomorrow just to try and get pre approved. Also have to have an accepted offer from the seller by Wednesday which leaves me no time to negotiate. I've contacted multiple lenders in the Bloomington/Normal area and this was the only one that actually offers the 203k loan.

Deal #2: Off market 9 unit 

Asking price is $199,000. 20% down payment is $39,800 and seller would be willing to finance $20,000. Average rent per unit is $450 which means there's room increase it. I currently have 2 people who "say" they're interested In partnering on this deal and it would mean less upfront money from me, but it's one of those situations where I'll believe it when I see it. My goal is to eventually bust into commercial properties and I feel like this deal would be a great opportunity.

Any advice would be greatly appreciated.

@Zack Karp they do offer portfolio lending as well. From what I was told it was 20% for conventional but I'll definitely double check.

@Zack Karp it would be for a 2-4 unit but I definitely appreciate the input

@Matt Powell thank you I appreciate it. I'm a member of the Facebook group for the club and I'd love to come to a meeting but I work on Tuesday's so chatting on here is my best bet for now. I look forward to talking to you in the future 

Just closed on my first property and I'm looking to purchase my next one in the near future. I'd like to get some advice how I should purchase the second one. One thing I'd like to mention is that I have full access to a HELOC which is approximately 57K. The LOC is in my grandpa's name but he is allowing me to use the funds since I'm the one who is making the payments on it. I already started the loan process with Marine Bank in Bloomington, IL because they have actual investment loans which only require 20% down as opposed to 25-30% everywhere else that I've looked. My loan officer said that underwriting won't accept a gift as a down payment so the money + reserves would have to be transferred to my account and it would have to sit there for a couple months. The properties that I'd be able to buy outright in my area all need extensive rehab done. My question is which scenario would be best:

1. Transfer money + reserves and wait 2 months

2. Buy a property for around 30-40k outright and refinance in 6 months(they'd refinance for 70% LTV)

3. Try to get a hard money loan for a 12-18 month term and refinance after

Any input would be greatly appreciated.