All Forum Posts by: Dane Delatte

@Tom S. Thank you for the advice. That is exactly what I was asking. 

@Tj Hines Thank you for the information. But, I think the Question was misunderstood. That may be because I did not do a great job of asking it. I am not asking for someone on here that I have never talked to, to just hand money to me. That is not all what I was trying to ask. I would not expect someone that I have never met and have never talked to to give me money. Neither do I expect anyone to take the risk of loaning money to me when they don't know any of the numbers of the business as someone stated above that I may be trying to scam people.

My main question was, what is the normal in the real estate world when someone may loan money to an individual to make a purchase? would it be normal for me just to pay that person back with interest or is it the norm for that person to take a percentage of the company?

@Rick Pozos Not sure where that came from. I have posted numerous topics on this website and asked many of questions. I have also taken all the information I have received and internalized so I can use it. I am new to this and the only reason I am asking for feed back is because this deal basically fell in my lap because I have been working for the Owner for 6 years and he would love to sell me this place. I wasn't specially asking people to just hand out money to me. I do want to thank you for the information of splitting a percentage of the business. I'm trying to find the best solution to go about trying to get the money since I am new at this and trying to learn how the investing side works.

@Brandon C Johnson I don't have great credit.  It is somewhere in the mid 600's. That is why my friend had to get creative with the way he structured the bank loan being 40% value and owner financing the rest. I will message you though. Thank you for your time.

@Eric M. Right now we charge only weekly rates so i wouldn't be getting big monthly sums at first. The complex is located in an area in Ascension Parish where there are around 70 chemical plants. The apartments try to cater to the out of town workers that come to town for periods at a time to work in the plants. I am not saying I wouldn't try to change to a monthly rate, but that would be what I would be taking over. But thank you for the idea and I really do appreciate all the advice contrary to @Rick Pozos beliefs.  

@Tom S.

1) The tenant situation should be no problem. I am the manager of the apartment complex that I'm trying to purchase. I have already talked to the legal representation I had to talk to just in case I would have problems with that part. 

2) My best friend is a commercial lender himself and has drawn up the deal where he thinks the bank won't turn it down. He said his bank would not flinch at doing it if they could but the complex is not in their zoning. Some bank term I'm not familiar with called "Red-lining". I not 100% sure what it is but he said they would definitely do it if they could. He has some calls in to other banks as of now, but of coarse, I would only need the $50,000 once the bank has approved the 40% of the value loan. 

@Tyler Bobo

I will be getting 40% from the bank and the rest will be owner financed. the $50,000 is a down payment directly from me on the owner financed 60%. It may sound a little odd but the seller would like to get at least 50,000 directly from me so I have something, even though it's only 6% of deal, in the deal. I think he wants it as a symbol that i'm invested more than anything. I guess it makes him feel like I won't just walk away if I already have some of my own money invested in it instead of just the banks money. (I'm thinking the next question would be, aren't you putting a down payment for the 40% from the bank? No, they will be signing the business over to me before the deal so I can borrow the 40% from the bank.) 

@Tyler Bobo

Thanks for your ideas. While I don't have the ability to do most of those things, I do understand what you are trying to say. There is money somewhere that I can try to find. I know I don't have anyways to get the money from anything that belongs to me but I will have to find someone else to borrow the money from. The bad thing is even if I find someone or multiple people to come up with the money, then I really don't have anything else to back me paying it back besides the business itself. But thank you for taking the time to help me out. I really appreciate it.

@Sathish Sekar

I think it is a good deal and worth purchasing. It currently clears over $120,000 per year. The reason it seems I am investing my last penny is because I don't have many pennies to begin with. I currently manage the apartments that I am trying to buy and I don't get paid much. I would love to start investing in more Real Estate once I have the Cash-flow from this business but this deal was just handed to me because I Manage the complex. 

Now the big question you brought up would be the payment back on the $50,000 if the business were to go South. Nobody plans on that happening when they purchase a business but I do understand your point on that part. So, that would be another question I have. "If I don't really have any thing to back me except the business I am buying with the $50,000, are there any other ways to go about getting it?"

I am caught in a predicament and am looking for ways to solve it. I have a deal that I have been working on since May and I am getting a little closer to making it happen. We have had to get creative with the deal because I did not have the money to put down a down payment on the place. Without going too deep in to the details of the deal, I need to get about $50,000 of my own money to help make the deal happen. Like I said, I don't have it to put up so my question is "what would be the best way to try to raise the $50,000?" I was thinking the best way was if I could get a personal loan from someone and pay them back plus the interest. 

Any ideas or solutions that anyone could think of would be appreciated.  

@Courtney Fricke

It is in Prairieville, LA. I have been thinking the same thing. While, I would love to have a company do that for me and I could spend my time more useful some wheres else, it looks like I will have to manage it myself at least until I can get things moving smoothly. Thank you for the advice.

@Christopher Hunter

Thank you for the site link.