I have an opportunity to purchase (acquire) a three unit building in the Chicago land area. Its owned by my brother in law and he’s motivated to sell. Here are some details can anyone think of a way I can secure this property or make a profit.
A. Valued at 270,000 he owes 240,000 wants 17,000 cash and released from financial obligation. Its in great shape and renters pay utilities.
B. It has a positive monthly cash flow of 1000.00
C. My credit is not great and I am unemployed but motivated
Does anyone have any suggestions of how I can take possession and remove his financial obligation thru a creative plan of acquisition he’s open to any suggestion if a purchase by me is not foreseen.
I don’t believe you can make anything on this property with a five percent discount on the retail price. Come on.
There is not 1,000 monthly cash flow. I guarantee it.
But try this, and prove me wrong.
Take the Gross income and divide it by two. Take that figure and subtract the mortgage payment. What sum that comes to is your actual cash flow. If it comes to $1,000 I’ll eat my hat.
Otherwise, you’re paying retail, and the only upsides are in your brother-in-law’s favor.
Sure he wants $17, and off the loan. I want someone to give me a Viper and a three-month paid vacation to the Caribbean, too. Hope springs eternal.
Offer him a note for his full equity with no payments, no interest, for ten years, and take over his loan, and get the deed. Sometime over the next ten years, you offer your b.i.l 40% of what you owed in cash. He accepts 50%, and so you refinance the property with enough cash-out to pay off your b.i.l. at 50-cents on the dollar.
Meantime, you’re going to put all the cash-flow in the bank, and stock up for a b.i.l. pay-off party. In the end, you didn’t get a steal, but you got steal terms.