since you’re only putting up $500 per building and seller is giving you back $200 per building and netting $300 per building, is he putting up the additional cash to close (title insurance, escrow or attorney costs, tax stamp cost if applicable, etc. etc.
i’m just playing devil’s advocate here and just trying to understand the deal. do the buildings have alot of costly deferred maintenance? there’s gotta be some reason he appears to be desperate to sell these. if i were selling the units, i’d have to be pretty desperate to sell them 15% below market with basically 100% financing.
You’re really putting too much emphasis on why he is selling the properties. Sure, it’s a good idea to ask, but in the end, if you’ve done your homework and it’s a deal, who really cares why he’s selling?
If he’s selling because there is some big problem with the places, then it’s unlikely that he’s going to be really upfront with it. Besides, it’s really your responsibility as the buyer/investor to find out the potential big problems.
Maybe he’s selling because he’s ready to retire. Maybe it’s because as I stated earlier. It’s his specialty to buy properties, fix them and then offer them as “instant investor” deals. Maybe his dog died in one of the units and now he can’t bear to look at any of them anymore. Maybe his cat needs brain surgery and this is the only way he can afford it. Again, the point is, how can any of these make this any better, or worse, of a deal?
This may be a great deal. This may be a bad deal. Really only JBolar knows, because JBolar is the only one on this forum that knows the whole deal.
Or Maybe just maybe!!! His grandmother drank to many beer’s at Mardi Gras and hi-jacked a bus full of zebra’s and he need’s the money to travel around the world on a camel to look for her! Hopefully he has more to drink then just Kool-aid with no sugar because this happened to me once!! O.K. I admit it never happened to me but MAYBE IT MIGHT I doubt it but maybe!
good point RAJ! Get an inspector to over look the property! And a appraiser to pull comp’s! And call it a day if you decide a month from now that it is not the right deal for you charge someone 1,000.00 to take over the payment’s Make $8,500.00
Robb
Hey RAJ you thought you had a good imagination! I WIN!
I know this property you are talking about. I talked to the owner too about it. He offered me the same deal. The question is, why would someone want to sell 10 4-plexes at the same time? And also be willing to finance it. I don’t get it. You better do a thorough investigation about that neighbourhod. I will also suggest you do a back-ground check on the seller.
The property is l ocated in New Orleans. Correct me if i’m wrong.
Why? Why? Why? Everyone is always looking for a homerun deal, and when it turns up, they’re too scared to jump, screaming, “why is it just a good deal?” “What’s wrong?” “Why? Why? Why?”
Again, who cares?
If it looks good, get the deal under contract. Do your homework on the PROPERTY. Get your inspections, etc. Verify that the seller and owner are the same. IF it still looks good, close the deal. Makes lots of money.
I saw it on paper just like you. I called him up, and he offered me the same package. I do not really know much about him. There are alot of motivated sellers in that neighborhood. Infact, I’ve got a property under contract out there.
I think that neighborhood has some drug issues. I talked to somebody in the neighborhood, and he adviced me not to live in that neighborhood. Who cares? I’m only buying. That will be my first time, and God will safe-guard, and invrease the value of my property.