Found the perfect seller for us. Issue is we don't have the money.

[Matthew Bednarik]

Hi all. I'd love some input and feedback on what you would do in this situation.

We found a mom & pop landlord who has a portfolio of what we're looking for (small multifamily in Class B area). His dad built the properties in the 70's and he inherited them. All owned outright.

I met with him yesterday, he currently has two duplexes on market for sale by owner. One duplex he owns jointly with his brother and is not accepting seller financing as his brother had to move into an assisted living facility and he needs the cash to help him pay for that.

The other duplex he owns himself outright. I have not brought up seller financing on that one yet. He wants to sell one or two properties a year, so he is perfect for who we want to build a relationship with in hopes that whenever he's ready to unload one we're his first call.

AND! He said he doesn't care to get absolutely top dollar for them. He much prefers favorable terms and the right buyer.

A little background on us:

We're a family investment group - my wife and my brother are my business partners. We bought one duplex in the same city as these ones last year, and my wife and I bought another duplex using an FHA loan and are currently househacking.

Financially, we got hit a little hard this year with the birth of our second child, medical bills, vet bills, car repairs, and house repairs. Depleted our emergency fund from $20k to $1k. But hey that's why you have an emergency fund. Life happens. And my brother had major home repairs and also needed to buy a new car.

So cash wise we're a little short and I think coming up with a down payment would be difficult. Lenders in our area are requiring 25% down for investment properties.

Any thoughts on how we could proceed?

My brother had the idea to build a relationship we could offer to manage the properties for free in exchange for the right of first offer. I don't know if free is the right way to go in the event he either takes advantage of it or wants an astronomical number for the properties, both of which seem highly unlikely based on my meeting with him. He seems genuine.

Thank you for taking the time to read this. Any input is greatly appreciated.