All Forum Posts by: Danny Jasper

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I have a property that delivers a NOI of $43k ( I added in $5k for miscellaneous expenses to get to the current NOI). Number not confirmed but I did look at the T-12 for the property. The owner is near retirement and suggested we do a creative financing approach to the property. Here are the specifics. How would you approach the deal? I am trying to do this deal no money down.

Asking is $400k

Units 11 units

NOI - $43k (includes taxes and insurance)

Mortgage balance from owner : $240k

The owner initially said that $100k down would work and he would finance the rest but that doesn't seem to work because of the mortgage currently on the property, he would be using the money that I send him via interest to pay off the mortgage.

My initial  approach:  Hard money for 60% of the value and the seller carries a second for the remainder at 5%

Hard money at 10% - Yearly interest of $24, 420 ( refinance at the end of the 1st year)

Seller Financing at 5% - Yearly interest of $8,140 (30-year amortization with a 3-year balloon payment)

Total Yearly Financing Costs - $34,863.83

Yearly cash flow from property  - $8,337.17

Monthly cash flow - $694.76

I would be responsible  for taxes and insurance

He mentioned that this would be a contract for deed.

Any thoughts on this deal would be great.  

Is wholesaling in California extremely competitive?  Has anyone had any success this year?  How much marketing are you doing before you land a deal?  If you can give me any specifics that would be great.  The reason I am asking is that I am looking for ways to build up some cash to start investing.  I am also looking into the creative finance options as well, seller financing, subject to and lease.

Any help with these questions is appreciated.

@Ali Boone 1st thing is to get acquainted with the people here on bigger pockets. I attended my local REIA meeting to network with other investors. I want to partner with someone locally who is looking to do the same thing. I am basically going to do whatever it takes to make this happen. I have already reached out to agents and started to develop relationships with them. I figure the more people I can connect with, the more deals I can get done. The next step for me in a month or so is to find a friendly bank and develop a relationship with a banker. I am also currently looking at deals across the US. I figure the more momentum I get in the beginning, the faster I can start getting things done. Regarding a specific plan of action and time frame, that is something I am currently developing.

BTW, I like your website.

Any advice do you want to give?

Thanks,

Danny

Hello everyone, my name is Danny Jasper and I am from the Los Angeles/Long Beach CA area.  I am interested in learning about multifamily deals and potentially partnering up with someone to get a deal under my belt.  I am extremely interested in the creative financing aspect of real estate.  

My goal is to own 1,000 units in the next 5 years. Any advice you can give send it my way, I am ready and willing to learn more!

Thanks,

Danny