All Forum Posts by: Alex Deters

Just your average Bigger Pockets stalker here. New to real estate, been reading and researching for awhile now. Would really like to talk to someone in kentucky about investing in real estate. Maybe partner up, mentorship or just get a few tips and tricks from you.

@Scott E. Thanks that answers my question. So with a sale leaseback I'd still have to aquire financing.

@Scott Wolf I don't know if they are or not. But the fact that it says 10% down payment minimum and its a sale leaseback has me confused.

Ok, so I know what a sale leaseback is. My question is, how does financing work? There's a property I'm looking at that is only asking for 10% down. But if they're trying to do a leaseback to raise capital, why would they only want 10% down? Do they become the bank like an owner financing deal with SFH?

@Joe Hammel makes sense! It's for sure a long game.

@Colton Hahn ok so without looking at the cap rate, what are usual returns for a 10+ unit? Is 2k-3k average? It just seems low to me.

So I've been looking on Crexi at Multifamily buildings and most have a 4%, 5%, 6% cap rate on average. Isn't that low? How does one justify putting 300k down to only make 2k-4k a month? Is that a normal return?

@Joe Miller Yeah a letter seems like the right idea. Especially due to their age. They are 58 or 68 so I think a letter will be more their speed.

@Kerry Noble Jr I am looking at a property that is off market, hoping they want to sell. Would I just need to do what they have suggested in the comments as far as the contract/sale agreement and then take it to an attorney?

@Joshua Janus. Well I know the house needs extensive repairs, it's probably a full reno just from looking at it from the outside. I also know they are in their 50's, have their own electrician business, and they bought the house for 25k 3 yrs ago.