Need Help: Creative Deal Crafting!

[Reece Weatherford]

Hello BP! I’m a senior at the University of Arizona and I’ll be starting Navy flight training in Pensacola, FL next year. I’ll also be starting my real estate investing career. I need help crafting a unique deal. 

I’ve been researching the Pensacola market for the past few months and I have found an excellent small multi family that cash flows well and suits my goals. 

The sellers own the property free and clear, two units are currently rented, and the third is move-in ready. Their reason for selling is one of the owners passed away and they are selling off most of their rental properties. My only problem is that I can’t close on anything until May next year. 

I’ve been negotiating with the sellers to structure a deal where I place it under contract now with a COE in May. They can choose whether or not to place tenants in the third unit. This arrangement would actually be beneficial to both of us, since they’d be collecting the rents for the next 7 months that they’d miss out on if they were to sell today. 

I’m trying to craft this deal in a way that is safe for both parties. The sellers are very reluctant to agree to sell something 7 months down the road. I’ve offered a written contract to be recorded with the title company, proof that I will be commissioned as a Naval Officer in May, and proof of funds (just got pre-approved with a local lender).

I really want to make this deal happen. The sellers are open to negotiating with me, but they want to make sure they are protected. One of their concerns was if the house burns down or gets ravaged by a hurricane in the next 7 months. How can I mitigate the risk to them? 

This is a unique situation, and I appreciate your time in reading it and offering any advice. Thanks!

Reece