All Forum Posts by: Jeremy F.

I would have never thought of this as an option. Thank you Anthony! Going to go dig into this and see if it will work.

 Thanks Karl, that is what I figured but just wanted to have confirmed incase I missed something. 

Hello Everyone!

I received an offer on a property I am trying to sell (was a month or two late from the peak and due to the market it is in I haven't gotten a lot of activity). They are offering at the price point I want however they want us to finance 20% over 3-5 years. We still have a loan on it so my primary concern is being in 2nd position on the loan and them having little skin in the game. The property still cashflows but I would still prefer to get out of it. I guess my primary question is, have you ever done or seen a deal that used seller financing that was able to take 1st position over the bank? Any thoughts on what you would do to make it work? They wouldn't do 10% seller financing. 

Thanks!

I am only buying 1960+ now as well for that reason. Seems like most of the inventory in the area is in one of those two age groups, not much in-between. My first few deals were older 1920s homes and I did underestimate the cap ex (even though I was warned several times about not doing this on biggerpockets). I still make money from them just not as much as originally planned but it got me into the game so there you go.

Thanks! @Bill B.

Hello BiggerPockets! I am currently under contract for an off market apartment building. The seller informed me he was doing a 1031 exchange and wanted 30 days to find a building. If no building was found on his end in 30 days he could void the contract. I know this kind of deal will normally close whether they find one or not since they still have several months to find one but it was a non-negotiable for him to close on another property first and I did find a few examples online of others doing this so I went with it. So far the contract has expired twice and we have kept extending it. They still haven't found a building and now want to extend it to 12/31 without a guarantee they will close.

My logic up to this point has been that with the market being the way it is here with no good deals present or coming in, why not keep extending it. But with how long this has been going on my partner is getting impatient and now I can't really blame him. I think I may need to change course and possibly give him the extension but demand he close no matter what and just risk losing the deal. Is there something I am missing here? Does anyone with apartment or 1031 deal experience have any advice or opinions to give? What would you guys do in this situation? 

Thanks,

Jeremy

@William Hochstedler Exactly, thanks for your post.

@Ben Leybovich There are several other PM's (only about 4-5 in the area I would use though) and I have already interviewed and have one as a plan B.  Both my PM and I agree we do not need an onsite manager for this property. 

@Bryan Hartlen My agent has tried several times and they aren't giving anything up. I guess he has worked with the sellers agent in the past and this is just how they are. 

I am thinking the main problem with this deal would be that I would have no cash-flow for the first 5 years, I would need to put all the cash-flow into fixing it up. I do not have enough cash for the down payment AND the rehab. Typically I see the complex owners on here do the rehab as fast as possible, not slowly overtime. 

@Jon Q.  7% for management. 

@Greg Dickerson I understand that, per my post the listing agent is refusing to provide any of that information. When I walked through the unit my property manager and contractor were there.

@Ben Leybovich You are right, I could fill in most of the blanks with my experience and calling utility companies, etc. Can you explain the management comment? I already have a property management company that handles my other rentals and runs buildings this size no problem. 

@Jon Q. Planning on using my property management team that I am already using on my other rentals. They walked the property with me and said they would have no problem running the building.