11 Properties for 325K...What are some options?

[Tiffany S.]

I have a friend whose grandmother purchased 11 homes last year for her kids/grandkid (my friend being the grandkid). Its a mix of SFH and MFH. The properties are causing turmoil because...well they can't get along to say the least. They now want to sell. I would love to buy them all but i realistically don't have that kind of cash. Ideally they want to sell them all together. He is a banker himself. He says that fully rented the properties have the potential to bring in 100k/year before expenses.

What are some options I have if i wanted to buy them all? Anyone have any portfolio lenders they would suggest in Hampton Roads (norfolk, portsmouth, chesapeake, Virginia beach) ? How would I approach someone with a JV for this deal? I imagine i would need 20% (65K) at the least PLUS reserves. All of which i do not have. Just looking for some advice from anyone who has purchased this many properties at once. Thanks

[Matt Lawhun]

I would offer 10% down with seller financing over the next 10-12 years and a balloon at the end of that. That gives you more than enough time to pay down equity and bring in a JV anytime within that period.

There is a lot more involved than what I offered in the two sentences above, but the technique is real. I bought 7 rentals for only $5,000 down, 10-years taking the loan subject-to with an additional 3-years seller financing at 0% interest. I have a ballon payment at the end of 13-years for $74,000, will have collected rent for 13-years, got all of the tax breaks and paid down equity (currently at $650+/mo principal) for all of those years.  

Just an option.... 

Best of luck.

Matt