Commercial seller/owner financing network

[James TenBarge]

Hello everyone,

My name is James and I am a new real estate investor that will be acquiring commercial properties through seller/owner financing. I am a student veteran who is completing another degree, this time in accounting, here in Colorado. I have a lot to learn and am getting after it.

My goal is to diversify the markets that the properties cash flow from in case of a recession or market crash, but at a minimum I would like to own/be partnered in 1000 apartment units across the best US markets within five years.

I am seeking to network with anyone who may have tips or advice for paths of success. If you know anyone who has pursued this before please have them reach out.

I only wish you success on your journey through life!

James

[Joel Owens]

James in the current cycle especially multifamily being top of market what you want to do is almost impossible.

At the bottom about 10 to 11 years ago owners were desperate to not have to keep managing a headache so they might take on owner finance as a way to not deal day to day with problems. The buyer then for taking that on might have had upside on the next cycle upswing that happened and refinanced out and cashed out the owner finance.

These days listed multifamily gets sometimes 10 to 20 offers on it with regular buyers paying all cash or getting a regular lender loan with some down. You would almost have to find an older owner who does not want to sell the conventional way and 1031 exchange so they do owner finance and take capital gains a little at a time. Even then the owner depending on the state they own in would want just as much down as a lender. This is because if you could not perform and they had to foreclose and pay legal fees to get the property back and re-stabilized they would not want to take a loss on it. Especially if this is listed for sale owner finance the seller is going to have real estate commissions and closing costs so likely will want a minimum of 10 percent down and likely 15% or more.

If you are buying multifamily less than 100 units really do not have the scale to be more passive with operations. If it is 10,20,30 unit or more type stuff most times need to be local to the asset especially B to C type assets. Otherwise you are far away depending on a property manager that is not making much money off of that project so could be a distraction versus their larger properties they manage that give them a larger revenue base for their business model.

Good luck. I hope you can make it happen I just know the realities of this cycle. I get contacted about 100 times a month from syndicators with experience and money wanting to buy larger multifamily and they cannot hardly find anything to buy. Most owners are in buy mode and not sell mode unless they get a crazy unbelievable offer or the place is located in a crap hole D to F area being pushed off as a B- location to the unsuspecting investor.

If you have limited experience with multifamily and very little money that is a tough combo right now. You might want to go work for a larger multifamily operation and see how they do it and acquire properties in real time. Maybe that owner would give you a small slice eventually on a project you brought to them that works to get going.

No legal advice given.