Curious

[Jon Mccarthy]

What and Why would someone sell two 4 plexes at the same time. I just can't seem to connect the dots. They are old, I drove by them they look to be in good shape. Not bad cash flow from my guess on the numbers they posted. I would just think sell one keep one but why sell both at same time and realtor says owner does not want to split them up. Do you think that I am missing something that I should think about in the future for when I come across this stuff again. I just want to know. What do you think?

[Ben Leybovich]

Originally posted by @Jon Mccarthy:

What and Why would someone sell two 4 plexes at the same time. I just can't seem to connect the dots. They are old, I drove by them they look to be in good shape. Not bad cash flow from my guess on the numbers they posted. I would just think sell one keep one but why sell both at same time and realtor says owner does not want to split them up. Do you think that I am missing something that I should think about in the future for when I come across this stuff again. I just want to know. What do you think?

Jon - I had no trouble understanding this post at all :)

If you check, I bet you'll find that these two properties are on the same note (it's called blanket note).  Both were used, or, I should say, the equity represented by both properties, was used to collateralize the loan.  If one of the properties were to be sold, the bank may not be satisfied with its' collateral position with the other property. 

So - the seller likely does need to raise some capital.  They might very well be satisfied to sell just one and keep the other, but not the bank.  That's likely why both are being sold...

Hope this helps.  Good luck, Jon!