I would like advice on setting up a win-win no-money-down deal. I live in Brooklyn, NY and one of my neighbors has retired and moved back to Ghana West Africa. He put up his house to sell but will probably have trouble selling it on the open market for a quick sale. It is a two-family property and is listed for $1.1 million. It is in good condition, just outdated. I know he does not want to carry the property in his retirement and does not want to worry about renting it out, etc until the market picks back up. He has had bad situations with previous tenants and does not want the headache. This gives me a good opportunity to work out a no-money-down deal. He would be interested in getting $800k for the property. I would need to sort out how much he owes on the property, what type of mortgage he has, verify what his monthly mortgage payment is, if the property has any liens on it and a clear title, etc. I plan to work out an agreement with a real estate attorney I just need some suggestions on how to structure a good deal.

If I were to work out some sort of syndication type agreement, I suspect the duplex unit that has 4-bedrooms and 2.5 baths would rent for at least $3500 per month on a yearly lease. The 1-bedroom unit on the ground floor has 1-bathroom and access to the backyard. I would lean towards furnishing it and renting it out month-to-month. I suspect I would get around $3000 per month for it. He has mentioned that his monthly mortgage is $2500, but the next step would be verifying that. He has mentioned that as long as he can cover the mortgage and get a margin of $500 to $1000 per month that he would be happy. My only concern is that I would be trusting him to pay the mortgage and keep everything current until we work out a transition period with maybe a rent-to-own type situation with a quit-claim deed.

What would you do to set up a win-win type situation? How would you structure a deal? This would be my first time doing a creative real estate deal like this with ideally no money down. If I set up enough runway, I could save money for a down payment, particularly with the margin from renting it out.

Thanks!

Od Ntuk

New York City, New York

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