Twelve abandoned condos!

[Brenda Whittaker]

I found what I thought was an apartment complex, abandoned, turns out it's 12 abandoned condos/townhouses.  The complex consists of several buildings each with 2 - 4 units.  Needs minor fix up.  Value around $1M.  I would imagine if offering on all 12 a good discount could be negotiated.  I am told I cannot get a loan in any way shape or form if I am also borrowing the down payment.  I do not have 25% of $1M.  SO,,,,,,,,  does this mean I am left to one option, a partner with a ton of cash?  Also, does anyone know of a professional entity that can help put together a nice portfolio of past projects?  I have experience in renovation but am weak on the business side.  I hate business, Im just really good at renovating houses.  As for this foreclosed property, there is definitely potential here if someone can get creative with funding.  A proforma suggests a $25K profit on each unit is very possible.  I'd give it 6-8 months to complete.  Advice?

[Andrew Johnson]

@Brenda Whittaker This is going to sound mean so please take it in the right way, but you desperately need a partner. If you "hate business" there's a monumental amount of risk in assuming the current value ($1MM) and that your pro-forma works. And even if it's done in 8 months you're not going to sell out overnight. You might have another 6 months to sell all 12 units and fully extricate yourself from the property. You'll still have carrying costs and maintenance costs during that period as well as funding the majority of the HOA yourself. I'd seek out a partner who can run the numbers, see how much extra (over your pro-forma) it would cost to get your "minor fix up" timeframe down to 90 days, etc. so you can turn the property. It also wouldn't hurt if that business partner was a licensed real estate agent. Effectively saving 1/2 of the commission when it comes to sell will add up extremely quickly. And while you need a down payment and a loan you also need carrying costs, materials cost, some labor cost, reserves, etc. So the "ask" is going to be a lot more than $250K from the partner in this deal.