Seller Financing Options

[Kylan Philbert-Richardson]

Hypothetically,

Let's say a mentor of mine is selling an 11 unit, well kept, and deleaded for $2.2M asking. You, as a savvy investor know this is an option, but strapped for cash.

You take into consideration this fact without letting it deadhold you. How does one go about offering to seller finance the deal, and what contingency plans do I need if I wanted the deal to be mine. I.e) do I need short money in my pocket to make the deal mine, or any other upfront money to cover my a** until I can create cash reserves?

Would you evict everyone first or wait to stack more cash? Any apprehensions about jumping into such a deal as a newbie ?

Assuage my fears, or put me in my place! I'm open to all constructive criticism.

I thank you all - Kylan

[Aaron K.]

@Kylan Philbert-Richardson you need cash reserves for sure even if you are lucky enough to find a seller wiling to seller finance a property at 100% that cash flows (which in and of itself is unlikely) Generally not good practice to evict all existing tenants at once unless you plan to tear the place down and probably not a good idea at all unless you plan on renovating every unit to increase the rent.  

Bottom line is without cash reserves and a cash flowing property the rest of the problems are irrelevant until you can get over the first hurdles.