I purchased an Apartment REI Course that came with 1yr e-mail consultation! Here is my e-mail:
My Credit is in the toilet - I have no cash - and even worse no income. But I do have time and my brain still works :biggrin.
I came across a builder who is selling a luxury Mansion worth $3M.
Willing to sell for $1.5M
At this time I do not believe that he has received an offer for over $1M
Exit Idea #1:
Get Mansion under contract, to close in 60 days.
Get apartment Building/s seller who would accept a short term Note secured by equity in Mansion as part of downpayment under contract to also close in about 90 days.
Close on Mansion outright with hard money.
Then close on Apartment Building/s.
Hard Money interest on $1.5M would kill me.
Not Certain that i’d be able to refi… Hard Money into a conventional Mortgage.
My e-mail Mentor’s reply:
Residential real estate is quite different than commercial apartment buildings with massive amounts of disclosure regulations and different lending practices. Sorry I can’t be of help.
Please Post What you think of what I’m trying to accomplish and what you thing of my e-mail mentor’s reply
I think your mentor should have told you to ‘run from this deal.’ You are not in this league! This deal is a shot in the dark, a dream that won’t come true, don’t do it! Enough with sugar coating. Why are you looking at this deal other than greed! Start with something small and manageable. Something that won’t pull you into bankruptcy in the event you have a bump in the road. If you are going to sign for $1.5 million, make it a multifamily with a high occupancy rate…at least you will have income to pay the hard money loan (or mortgage). If your exit strategy does not work with a $3million dollar house, you have 100% vacancy and a sure bankruptcy.
I’m just trying to understand your logic here. A builder is willing to sell you a $3m mansion for $1.5m and you think you can tie it up with little or no money down and flip it in 90 days? A builder knows a lot about real estate and probably knows everything there is to know about this property. If he can’t sell it in such a short term, what makes you think you can sell it? Are you trying to say you know something of value about the property he doesn’t? If so, what?