I have a huge deal at my fingertips but I don’t know how to get it done. I have an apartment complex with an assumable mortgage of $690K. The owner is asking $1.5 million for the complex. I’m confused??? How does this work? What would I need to make this happen? Would it be possible to talk him into letting me assume the current mortgage, him owner financing the balance of his asking costs, and me cashing him out in 1 year? Would this be a good exit stratgey? Please let me know your thoughts. I REALLY want this deal!!
hubbbard,
The assumable mortgage means that with a small amount of extra paperwork at closing, you can take over or assume that mortage. In your example, you would also need to figure out how you will pay the current owner the $810K that he is asking…there is a possibility that he would owner finance. I think that $800K for 1 year is a terribly short time to prove yourself and scrape together that kind of money.
Are you an experienced investor? If not, $1.5M is a pretty big elephant to eat!
How do the numbers on the property look? What sort of cashflow will you get?
Also, stop for a minute and analyze why exactly that you “REALLY want this deal”…what is driving that desire?
Keith