How can I buy this property ?

Question

(Back story)

I am set to partner with a local (CT) hair salon owner who has been a tenant for 20 years. In conversation she mentioned that the owners were trying to sell the property but the deal has fell through. I found an agent that confirmed.

I figured we could be comfortable renovating the salon if we owned the building. It would be money better spent plus there are 3 apartment above the salon so that would be additional income.

The asking price is 289k and it’s on a Main Street in the city

The salon owner has said that the property owner offered her the first option to buy but she isn’t in position to so she never pursued. Neither am I exactly (my credit utilization is high currently leveraged in my marketing company)

The property owners live in Greece and the property is poorly managed due to distance I suppose.

So my question is how can I buy this property?

I need creative ways! Can a form a group of investors to come up with a down payment? Do I need to start a business to purchase it under? Should I go through the salon owner to reach the property owners to see if they are interested in a private deal where we give them a down payment and pay the property off over time directly to them. (Since they are having a hard time selling it seems) I need ideas guys.

Thanks !

Chase Louderback · Answer

Definitely make sure you have inspection and financing contingencies in your contract if you plan to partner or find your downpayment from other means.

If you reach out to the owner directly, it may be best for you to try to negotiate a seller finance deal. If they are open to doing that, then you could see if they would go for 15% down, 30 year am, 5.25% interest since they are having trouble selling. If they want more cash up front, you could always have them hold a second for whatever your bank will allow (probably 10% or 15%)

Kirk Galt · Answer

Hi Donnell,

Is it listed with an agent? Most purchase agreements typically already have an inspection and financing contingency built in, otherwise you can write in your own. If you don't like what you find out in the inspection, or your financing plans fall through, you have the right to rescind the agreement.

Donnell Durden · Answer

@Oleg Shalumov that would be great! I was thinking I would have to get about 20% they are asking 289k and a seller just dropped out so I could do a lower offer I’m guessing. I just spoke to the salon owner and she’s going to give me the owners contact and hopefully I can make contact as soon as tomorrow. What numbers should I be on the look out for ?

Oleg Shalumov · Answer

@Donnell Durden get in touch with the owner through salon owner and if the deal make sense to you, offer seller a seller finanace deal. You would need to have some downpayment, and seller would agree to hold the note for 15-20 years. If the numbers make sense you should be able to pay the note off faster then 20 years, but I would need to look at the numbers to tell you that.

You can message me the numbers without the property address if you would like me to look at the details and provide you more detailed info on the numbers

Donnell Durden · Answer

@Kirky Galt what type of rhetoric would I use to get it under contract with contingencies. And that means what exactly

Kirk Galt · Answer

Get it under contract with a contingency. Then look for partners. You can hammer out the rest of the details later. If the salon owner has contact details, do ask. Maybe even get an introduction by phone. Otherwise, there are other ways to find the property owner.

How can I buy this property ?

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