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Updated almost 9 years ago,
1031+Owner Financing scenario
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?
🤔