Meeting about a 24-plex, 100% owner financed. thoughts?

[DJ Cummins]

Hello friends,

So I took a chance and mailed out 2(yes, only 2) letters to two different apartment complex owners. I had some free time and used the google machine to find their home addresses. Three days after mailing the letter, I got a text first thing today from one of the apartment owners who wants to meet on Saturday. I am beyond excited. I clearly stated in the letter that we(my wife and i) are interested in the property, but would need owner financing for a couple of years before we could afford to refi and pay him off in full. It was a total shot in the dark, but he is interested.

So, we bought a 4 plex last year, with conventional, 20% down financing. That is the only deal we have done. I know that we can handle a 24 unit, especially with the right PM company. Since we haven’t ever bought such a large building, what would you recommend asking for? Rent roll, last few years of tax returns/ expense reports. What questions would you ask. I have already written down quite a few things that I want to talk about, but I am trying to make sure I have all by bases covered.

I would appreciate any recommendations on what to ask during this meeting. I am not a big “salesman” type of guy, so I am not really sure how to approach the seller financing conversation. I am just a good ole boy. Hopefully the seller is the same!

thank you!

DJ

[Brandon Turner]

Looks like you've got some good advice already, @DJ Cummins - but I'll jsut add this: this first meeting is JUST that... a first meeting. Use this as an opportunity to get to know the seller, find out about the property, ask them how they got into real estate and what they love and don't love about it. Really just try to build a relationship here - I personally wouldn't push the "buy" angle too much unless they ask. The relationship part is KEY if you plan to do any seller financing. They have to like, and trust, you. Hope that helps! Good luck and let us know how it goes!