We are selling a 4-plex in IL, as we have since moved away (to TX) and want to have property locally. The property cash flows, has a history of basically NO vacancy, and is above average in quality and condition.
The buyer is a friend of a friend who is buying this as their first rental property. I referred them to my mort. broker and she has been able to get 100% financing for them. (an 80/20 deal) They didn’t know this was possible, so now they’ve latched onto the idea of possibly being able to buy this w/out bringing ANY funds to closing. We’re willing to sell them the property at a higher price and pay their closing costs if it turns out the lender will allow that (we’ll find out Monday.) But then the appraisal comes into question. The higher value will be there with the income approach and cost approach, but this property is so much nicer than anything in the area the sales comp approach could be a problem.
Can anyone think of any good, creative ideas? We’re basically needing to come up with about $10,500 to close the loan. I’m guessing they’ll go through with the deal even if they have to come up w/ the $$ (they have it, it’s just all tied up in various investments), but I’m a little afraid to take the chance. This is just such a “fall in your lap” deal for us, at the price we wanted, I haven’t had to spend anything on advertising, a trip up there, etc…I’d just really like to help it along if possible.
What other details do y’all need to help me figure this out?
(Yes, I’ve already tried to gently talk them out of financing the property this way, but they’ve latched onto it and think it’s the best deal for them.)
Karla in Amarillo