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Updated almost 10 years ago,

User Stats

23
Posts
34
Votes
Cliff Zarbock
  • Residential Real Estate Agent
  • Corpus Christi, TX
34
Votes |
23
Posts

How I got an 8 unit apt complex for no money down!

Cliff Zarbock
  • Residential Real Estate Agent
  • Corpus Christi, TX
Posted

I came across a women who was liquidating her rental property. She had 10 properties...duplexes, commercial building w/ 8 rental units above it, sfr's, quadplex, 8 unit apt comlex etc..

My business partner was interested in the commercial building(listed for 250K) and I was interested in the apt complex(listed for 225K). I made her a 300K cash offer for both just to see where she was at and she countered at 350K!! I countered back at 315K and she accepted.

I then wrote it up as 2 separate contracts explaining that I would be buying one and my partner the other. She was fine with that. So after some negotiating with my partner, I wrote up my 8 unit for 135,500 cash and his at 179,500 cash and got them escrowed quickly.

After doing a few inspections on the 8 unit which all came back fine. I then went back to the seller and told her that I wanted to make her another package deal... 225K for the 8 unit AND the 3 duplexes she owned right across the street(listed for 75K each) on an owner finance deal of 125K down, 100K @ 6% on a 30 am with a 3 yr balloon. After some back and forth we settled at a sales price of 240K, 115K carried by the seller at 6% on a 30yr am with a 3 yr balloon.

I then brought in an investor to buy the 3 duplexes for 125K cash. Leaving me with the 8 unit apartment complex for 115K owner financed with nothing down at 6%. I plan to do some value add by increasing rents(which are well below market currently) along with some capital improvements then refinancing within the 3 yrs.

Final numbers after value add will leave me a conservative $1,800 monthly cash flow!

Bang Zing!

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