Help! What do I do? What would you do?

My broker calls me and says “you put together the deal, he will most likely finance all of it. He wants to sell these.” Here’s the scenario…

  • 5 - 4 units apartment buildings. All built from '85 to '89. In great shape and willing to sell ALL of them to me.

  • Wants $250,000 for each (1.25 million) no bargaining on the price

  • Rents are $1850/month

  • taxes, insurance and budget for replacement’s come to $923.44

With ZERO cash flow on my part, that leaves me roughly $952 per month to service debt. Which in essence is the equivilant of purchasing a property less than half the value of what he has to offer.

I have nothing to give him! HOW CAN I MAKE THIS HAPPEN?

Only way you can pay the mortgage with $923 for each building if you put nothing down is if he will finance the whole deal at 2%. (Not likely)

With a normal mortgage this is negative cashflow bigtime.

Monthly payment: 30 Years
Interest rate: 2.000%
Loan amount: $ 250,000.00
$ 924.05 a month