Hello Investors, I know a man who wants to retire, he owns a duplex and has asked me to buy it and said that he will owner finance it, i have not gotten the rental info yet, we will meet later this week to talk terms and crunch numbers, my concern is, how do i structure this deal into a win- win for both of us, the property is $180,000 fair market, my main concern is the transfer taxes, and how to structure them into the deal because im broke, but have decent credit.
the deal has to cash flow, because if it doesn’t you can’t “feed the alligator”, and he has to be willing to do it with no money down,
if both of those can be accomplished, then he is a dear friend,
check on the condition of the duplex, if you have no cash to fix things you need it to be in great shape
Thank you for the tip, i will be meeting him at the end of the week, he is a reasonable man, but im not sure that i can do this with no money out of my pocket, i may have to borrow 3 grand to pay title insurance, transfer tax, and closing fee to title company, small price to pay, but tough when you dont have it, lol
don’t be thinking so hard on getting the deal done that you put yourself in a bad financial situation, you said you had good credit, I am assuming you have access to some cash if there is a problem, vacancy, etc,you have to have some cash reserves or at least the availability to get some cash if there is an emergency,
you don’t want to buy the property, get a couple of months down the road and the AC goes out and you can’t afford to get it fixed (Im in Texas and the heat is coming so that would be a common problem here)
I will go into this deal with a level head, but i am very excited, i have a check list for the property, i will do a very thorough inspection of the systems, windows, etc. as for reserves, im hoping to build them by banking all money for a year just incase, im doing ok selling cars because i cant earn enough as a realtor, i dont need the rental income, but im hoping to go full time into rental, rehab, flips etc. but you are right, the wrong deal will end my venture before it gets off the ground.