Multiple Properties on same contract

[Ryan Rodgers]

Hello everyone..looking for some guidance for this possible opportunity.

There is a landlord in my area who is burnt out and selling her 4 properties. I would like to approach her with possible owner financing but want to make sure I approach her correctly before doing so. I guess the first question is..

Do I have to have a different contract for each property or can I put all 4 properties on the same contract?

Here are the numbers:

The most I'll pay for each home is 25k. (100k total)

Each home will need about 10k in rehab max. (0% credit card will pay when refinanced)

Looking for a 10 yr term at 8% with a $5,000 down payment (Financing 95k). Monthly note would be roughly $1200.

Each home rents for a min of $700. ($2800)

Minus tax, ins, 10% CapEx, and 10% Vacancy left with around 700 cash flow.

Are these numbers feasible? My ROI is looking huge but I'm not sure if I have something wrong here.

[Stefen Lee]

i have put multiple properties on one contract and it saved a lot at closing. it was a process to get title company to understand but all in all one seller one buyer. i have more detail if you need. good luck

[Marcia Maynard]

We purchased an 8-plex that was on two tax lots. We had one purchase agreement to do so. But the title company required us to split it into two transactions, one for each tax lot. At that juncture, the seller took the opportunity to insist in a change of terms that were to his favor, not ours. The original purchase agreement was voided and had to be re-written into two purchase agreements. The value of the property had gone up in the meantime, so the seller raised his price. We were already into it too deep, so we went ahead with the purchase. We were naive and didn't even try negotiation! Now I would, as I've realized over time that everything is negotiable. The benefit, however, was that since there are 4 units on one lot and 4 units on the other lot, we were able to get better terms on our loan, with two conventional loans instead of a commercial loan.

[Account Closed]

I am looking at a similar deal and need help. I am looking to wholesale three properties from one seller to one buyer and not sure about the paperwork. Can I just put all three contracts on one contract for the combined price to my seller and than just put my total Assignment Fee on the assignment contract to the end buyer/investor. Any and all help is appreciated as I have never bought nor wholesaled a multiple property package deal.

Thanks

Robert

[Charlie Corn]

@Ryan Rodgers Your ROI is looking good because of the 5% down. Getting $700 per unit at $25K purchase price is a good return. I don't have such luck in my market. As far as the contract goes, especially since it's an owner finance offer, you can wrap them up anyway you and her agree. Touch base with the title company, or whoever the custodian will be. They may have certain requirements.

[Wendy Woods]

If at all possible I'm in need of advice on the best and simplest way to write a portfolio contract. 

[Peter Tverdov]

Simplest way I would say is writing up an LOI and then letting the attorneys write up the contract OR contacting your title company and asking how they want it written (all on 1 contract or broken up).

[Wendy Woods]

Thanks Peter, this was valuable information. After doing more research I found that I should in fact contact the title company and allow them to suggest which way is best for them. 

Your reply was confirmation.

Thanks Millions

[Alex Talcott]

Is the property in your Louisiana (Napoleonic legal code!)?

Contracts can be more flexible and business-friendly than most people realize. There are certain things you can not sign away, and unenforceable terms and instruments, but I'm a lawyer who sees contracts as more about getting-to-Yes than No-you-can't-do-that.

Message this lawyer if would like to chat more on it.

[Wendy Woods]

@alex the properties are not in Louisiana. I'm just seeing your message.