Advice On Purchasing a 50 Property Portfolio with OPM

[Chandra Minter]

I've been investing in real estate for the last 2.5 years however my current portfolio is small as I initially started investing as a hobby. I started buying and renting and have recently started wholesaling. Last week I talked to a gentleman that wants to sell his portfolio of over 50 homes. On the initial conversation he stated that he's in his 90s and wants to enjoy spending time with his family and therefore wants to sell his properties. He wants around $130k per property at $6.5 mil for the entire portfolio. In the initial conversation I was unable to find out how much each property rents for however I do know that all except for 2 properties are currently rented. The seller is willing to owner finance with 20% to 25% down. I plan on building a relationship with the seller to get more information on the deal such as a list of all the properties, current rent, rent history, status/quality of each home, cap rate etc.

My issue is I don't have anywhere near the 20% to 25% down payment, even if I were to negotiate the price down by $1.5 mil. I have a couple of private investors however their lending ability combined would not meet the down payment requirement.

The question I'm submitting to the forum is, how can I structure creative financing for this deal including the down payment? Any strategies and/or advise is greatly appreciated!

FYI: OPM (Other People's Money)

[Corby Goade]

Use some of the same strategies you use as a wholesaler. He doesn't want to deal with the properties any longer and live the dream? How can you help him do that? Maybe he gets 20% of the rents in perpetuity and that passes on to his heirs and there's a balloon due in 15 years? Maybe he carries the entire balance, but gets a premium every month based on rents? Maybe he gets to keep 25% of the equity as a passive investor in you? Just a few ideas, but there are a million ways to skin this cat, it's exciting to think about. Good luck!