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Updated almost 4 years ago on . Most recent reply
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What would you do if this was you?
Hello Everyone i need help or ideas/opinions
I have 4 rental properties under my belt, am lookinng to get into multi family properties/deals. So i saw a 6unit deal for $145,000 in a low income area, Which is mostly the where i invest in.
It is a for sale by owner so i called the owner and pitched him the idea if he would be willing to eliminate the bank ( mind you i have the option of the bank as well) And work with me directly.
The property needs some work about $10-20k to bring it to rent ready. he said he is open to hearing what time of financing options i can bring to the table and we can take it from there.
What financing strategy options would you do or suggest if this was you? Or would you just get a loan from the bank? Any idea is welcome
Thank you inadvance.
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@Yaamu Camara, asking if "he would be willing to eliminate the bank" suggests (to him) that you aren't qualified to get a loan from a bank yourself - even though you're telling us that you are. Did you have any pressing reason to want him to Seller-finance?
If a high deposit is a problem, your pitch needs to show that your monthly repayments to him would be at least what he is netting now (ie. ask for his income / expenditure records for prior years), and remind him that he would be free of Tenant maintenance requests / non-payment issues going forward. And, if you renege, he gets his property back.
The Interest Rate you're prepared to pay should be better than he can get from a Bank.
Note: If you can get Bank approval, you're in a better position to get a "cash" discount.
Seller-financed, you're unlikely to succeed in pushing for a lower selling price. Good luck...