Hey guys,
I’m new this game and am loving everything about realestate and I have a little situation I’d like to get some more info on…
I’ve got a 7 unit apt. building up here in Canada with MASSIVE apartments. Great location, great cash flow, great city, .5-1% vac rate in the city. Anyways, the building has been apraised at $500K canadian. The girl who is selling is highly motivated and has had this place on the market for well over a year.
So, I was told we could offer her maybe $250K-$300K cash from private investors and work into the offer that since I found the property and did all the legal, realestate, info seeking leg work my partner and I would get a share in the deal. So, if there were 4 of us in on the deal we would each get 25% share. Within 5 years we would buy the other two out with financing from the equity from the building. They’d get their money back plus a cut of the cash flow from the 5 years.
So, have any of you gone this route? Basically it was explained to me that we would be shareholders in a company basically. I was thinking it was almost too good to be true…
Please correct me if I’m wrong, like I said, I’m new to this game but keen to learn.
Thanks guys!