Structure of a Phased Buying Deal
I am currently working toward a property that has 3 buildings on it, each building consists of 4 townhomes, and for a couple of reasons I cannot/do not want to purchase the whole property at once. The townhomes are not yet subdivided, but the buildings are divided from each other which would allow me to purchase one building periodically from the seller. This would allow me to build the capital I need for down payments in smaller increments while still benefiting from part of the property. For the examples purpose let's just say $100,000 a door, $400,000 a building, $1,200,000 for the property. All units are 3 bedroom, 2.5 bathroom except for one unit being 2/2.5 (which I could live in) and also, one lot has been approved for another duplex to be added. I want to purchase in phases allowing me to leverage with 30 year mortgages and have smaller down payments. I am seeking advice on how to structure this offer in the best way to benefit myself and close the deal; the seller is willing to consider this, I already ran it by him. I am also open to any pointers or advice on what I should be considering, what to look for, what to look out for..pick my brain or offer advice, I am looking for both!