Buying 2 condos in same building

[Julie Verardi]

What are the pros and cons of buying a unit in a building where you already own a condo? If I contacted the owner directly is there any advantage to have them dealing with me one on one instead of through an agent? I currently own a condo in Jersey City and a multi family. I just did a refinance and am looking to move on to my next project. I was debating on which path to go down next. 

[Bill Goodland]

I think communicating with the seller directly would give you the opportunity to get the property at a discounted price if they are motivated, but it all depends. If they have equity you could bring up the conversation of seller financing. For example, lets say the property is worth 100k. You could offer 85k and state that doing a FSBO, they would be saving significantly on RE commissions(6%) and some closing costs, along with the headache of a property being listed for months on end.

If they are dead set on getting the full value, of say 100k. Ask them what they are going to do with the money. If they are elderly and are just going to put it in the bank, you could ask tell them you'll give them 102k if they'll consider sell financing. For example, 10% down with payments to him with 5% each month at or around 40% of the rent, with a 5 year balloon payoff(or whenever he's going to retire for example, who cares get creative) when you can either sell or refi.