All Forum Posts by: Bill Spell

@Tim Kane I have not done that personally but I know several local guys that do.  I will be doing that though when I move into single family soon.

Why not add into the contract some language that says in the event the appraisal does not come back at or above the agreed upon price the buyer will make up the difference in additional down payment with an high side limit of $10-$15k additional down payment? 

Since it sounds like you are working in a transitional area, your buyers likely have the funds for it.  If you explain the reason for the clause up front to their agent they will likely understand.  Most agents have dealt with appraisal issues that kept two parties from consummating a transaction they wanted to go through with. 

I've got a 48 unit in Houston that has 16 1/1 and 32 2/1 and the average for the last year was $22.71/unit/mo.  Each of those units has a stackable w/d but we have almost no families with children and no onsite laundry.

Your best bet is going to be to establish relationships with the brokerage and management community that specializes in retail.  Most owners of a $3mm strip center are going to be fairly sophisticated and far more likely to list with a broker when they are ready to sell.  Most of them would entertain an unsolicited offer but you will have to do a significant amount of research to uncover who the owner actually is in order to deal directly with them.   Brokers and management companies already have those relationships in place with the owners.

I wouldn't consider myself any kind of financing genius but if you need to use the equity in your home as your primary means of financing real estate investments, I would think you should look into a Home Equity Line of Credit (HELOC). With that in place, you can draw down what you need when you need it and pay it back as you make profits.