All Forum Posts by: Eugene Mar

Hey everyone, 

I've got a really good one here.

My property was sold for 42k and net proceeds came out to 35k.  The Title company did all the work with a warranty deed and Title insurance.  Funds were wired to my account.  The next day the Title company emails me and wants the money back.  Apparently they messed up and the property was foreclosed by the county and was then forwarded over to the Land Bank.  I called the Land Bank to see if I could redeem the property but it has already been sold to a developer.  I've bought and sold many properties in the past and this case is very bizarre.  My attorney tells me that Title screwed up and it's their responsibility to clean up this mess.  The property is in Detroit.  I'm Canadian.  Legally speaking, do I keep the money and tell Title to fix the problem on their own?

OK.  Call me in the morning.

• Not listed on MLS
• Warranty Deed 
• Long term tenant
• Tenant Occupied ($849/month)
• Professionally Managed
• Must Close within 5 days
• Access to property will be given after an offer is submitted; no exceptions.
• Proof of Funds to be submitted with offer. 
• Other properties are available as well with good returns.  A package of 3 homes will get better pricing.

Hi everyone,

I've come across a situation where I met a very elderly gentlemen who owns quite a substantial portfolio of commercial properties.  His is widowed and all his kids have no interest in his business.  Not only that but they are scattered all over the US.

He has offered to sell his portfolio to me for $5.5 million.  The numbers make sense and the properties are solid.  He has even offered to seller finance 1.5 million.  Seems like a dream come true!

Now here is where I get pinched and wake up to reality.  I have bought multi family buildings and whenever I approach my lender about seller financing the answer is always 
"Can't do it. The banks don't like it.  I know banks don't like it but is there a way around it?

Is there a way for me to get 75% financing and keep the 25% seller financing?

Secondly, I am a person who generally likes to help people.  I have listened to some of his stories and I am still trying to grasp what he wants to do with his sales proceeds.  He's in his late 80s and he tells me he just wants to sell cause he doesn't have much time left.

Anyone have a good way to structure this deal?

Hi Federico,

It's not greed.  I'm not a greedy person.  It's all about creating a win/win for my investors too.  I intend to add 5 more units to the building, raise the value, refinance after a year and pay back my investors fully.  The building is cash flowing well and I have found inefficiencies which will increase the cap.  

The down payment comes from Canadian funds which needs to be converted to US dollars.  The exchange has gone up considerably since we first started negotiating.  That's another reason why I want to see if the seller is able to help.

Thanks Bill for your insight.  I see that you are from Missouri.

What a coincidence.  That is where I am buying the property.

In Kansas City.

Even with 100% financing the DCR is at 1.4. I have done a lot of diligence on this property.

Would you consider mentoring me on this deal? I plan to be in KC in 3 weeks. Or would you consider JV?

I am looking at purchasing a 16 unit multi family building. The purchase price is $675,000. I was able to find financing for 65% LTV at a rate of around 5%. However, in order to make my deal work I need 75% LTV. I have gone thru four lenders and although at first they said they can do it they eventually come back with only 65% LTV.

One of the reasons is because I am a foreign national. I have substantial assets in Canada but these lenders are not very investor friendly.

I have been dealing with this seller for a long time and he knows I am serious. It is just a matter of the financing. The seller is also in a crunch because he wants to do a 1031 exchange. As much as I wanted the property I told the seller it can't be done. My contract expired over a month ago and he had it listed on the MLS. Today, I got a call from the seller's agent and he informed me the seller is willing to finance me 70% LTV at 5% for 25 years. That was quite a surprise.

Now that I know the seller is motivated and is willing to work with me what can I squeeze from him?

This is where I need some input from fellow investors. Ideally, I want to put as little down as possible.

Can I get the 65% LTV conventional loan and perhaps ask the seller for 35% seller financing? Is that asking too much? My cash flow will still be positive.

Or should I ask the seller for 15% and have him carry a 2nd mortgage? Will the lender frown upon this and not issue the loan?

Any kind of creative strategies here will be greatly appreciated.

Hi Curtis,

Thanks for the in depth detail.  Would you mind sharing what bank you used?  Are they investor friendly.  I am from BC and I invest in WA as well.  My only bank that I have dealt with is Umpqua Bank.

Richard,

This one looks decent.  What is your role in this transaction?

Jonathan,

This sounds like a dream come true.  I have been buying multi family buildings and have not come across loans over 80%.  How is it that you can offer 90-97%?

Has anyone heard of or used foxworth before?