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Updated almost 9 years ago on . Most recent reply

User Stats

205
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282
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Charles A.
  • Rental Property Investor
  • Jacksonville, FL
282
Votes |
205
Posts

1031+Owner Financing scenario

Charles A.
  • Rental Property Investor
  • Jacksonville, FL
Posted
I approached the owner of a foreclosed duplex I'm closing on this month. Just googled her name and her phone number showed up.(I'm Jedi like that:)) Other stuff showed up too. Including chapter 11 bankruptcy proceedings. Then I got curious. I searched her on the county website and discovered she has an extensive portfolio of multi and single family units. So I asked if she was looking to sell(of course). Well,she said she was getting ready to list the entire portfolio for sale. Sensing the opportunity,I asked her not to do such a silly thing (😜) until I've had a chance to consider if I could buy any of them off market. Here's the problem: She is asking retail prices way beyond what I usually pay to acquire my properties. I'm a BRRR kinda guy and used to paying half what she's asking for these units. But they are all in my desired neighborhood and she's willing to do owner financing at 6% ,30-yr amortization (!). Even if she agrees to slash her asking prices,she wants 30% downpayment which I don't have as I'm already buying her foreclosed Duplex (remember?)in a cash transaction with all my current reserves. I am wondering if she would wait for me to sell 1 or 2 of my existing assets and do a 1031. What are your thoughts? 🤔
  • Charles A.
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