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

General Real Estate Investing
1

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?

2

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