Looking for Owner Financed Multi-Family Properties

[James Marszalek]

What's up Bigger Pockets WASHINGTON?! 

Hope you are all having a productive and inspiring week! I'm looking for something pretty specific in Washington right now. Specifically Western Washington. I'm looking for Multi-Family properties where the owner is willing to carry the note. 

The terms are completely negotiable, and it is very unlikely that you will not get the purchase price you're asking for, unless you are grossly over market value. 10%-15% can be put down, the APR can be negotiated by the seller, but the most important aspect are the length of the terms. You must be willing to finance for 10 years or more, with a cash-out balloon at the end of the term. No price cap. Looking for anything $500,000 to $10,000,000+, and anything 4-Plex and above. I'd prefer something that has a cap rate of above 7%. 

If you have something, or know of anything that might be available that fits this criteria, please reach out to me. My contact info is on my profile, or you're welcome to reach out to me through BP Messaging. 

While we're on the topic of sellers, I'm also looking for flip projects in Pierce and King County (Like anyone isn't...). But, I figure I'd at least mention. If you have a lead, feel free to pass it across my desk. I'm happy to look at it. 

[Michael Rutkowski]

I'm just trying to give you a reality check, not trying to offend you. My offer would be just about the bare minimum a business owner would ask for. Telling me I look into numbers too much is almost offensive, and throws up many red flags. 

I poured my life into my business, why would I just give that away to someone so they could make money? That's basically what you're asking for. If you're proposing something like this you need a new angle. Like for example, my angle goes like this, "How much are you making in rents per month, let me double that." Then turn it around on them, and demand owner financing and pay them the double the money they are currently collecting after they agree to talk with me. Something like that. 

I'm telling you this because your margins are going to be crazy slim, for the simple reason that no one would offer you anything less than 9% interest on 9% CAP. 9% APR on a $1M is $90k before other operating expenses. You're going to have a mountain of skeptics asking you how you're going to cover your costs, let alone make some money.

Your niche should be focusing on how you can make more money than an existing business, have a plan and then focus on the owner financing. How are you going to do a better job than an owner who has been wrestling a property into a business for the past however many years? These are all questions a business owner will ask you, so be ready.