All Forum Posts by: John Boyorak

@TylerBushey That is an option that I was thinking too.  I'll DM you

Thank you @Account Closed I appreciate any help!

A little update: I talked with the owner on Thursday.  She said they have a few parties interested in individual buildings, but no one has approached them about their entire portfolio.  She needed to talk it over with her husband but is definitely interested.  

Going through public records, the properties are currently mortgaged but look to have a lot of equity available.  I'm not sure if it's proper to go through all the exact numbers on the public forums, but I estimate their portfolio to be valued around 2 million

With a mortgage, I know seller financing is going to be a bit more difficult.  I have a few thoughts:

Option 1:
A. Raise enough cash to finance their mortgage OR assume their loan if possible
B. Have them as a second lien holder, seller finance the remaining balance.

This seems a bit complicated, and I think would scare them off as to be a second lien holder.  I am not sure exactly how well this would work either.  The more I think and as I type this out, the more I really dislike this option.

Option 2:
A. Propose a master lease with option to buy.
B. Purchase properties individually until I can pull enough equity to pay off mortgage.
C. Seller finance the remaining OR repeat step B until all properties are owned

This is a bit more simple than above but still not as cut and dry as straight selling financing.  This would still allow the owners to sell their properties, and secure someone who is interested in purchasing everything and not just one or two buildings.  They would still receive monthly income and be able to retire.  I don't know if it's possible, but I could even work out making sure the current mortgage taxes and insurance are all taken care of.  

Option 3:
A. Purchase enough of their buildings to pay their mortgage off
B. Seller finance the remaining.

Much more straight forward.  If the owners would be willing, and I'm extremely confident I can raise enough cash to purchase 2 of their buildings.  This is my favorite due to how simple and straight forward it is.  We could even choose certain properties to help them avoid taxes.

Option 4:
A. Find investors to go on the deal with me and purchase the properties outright.

This is the least work on the owners end and give immediate results to them.  They would be subjected to immediate capital gains(which I think is going to be quite a bit, they built these properties themselves).  I wouldn't get as much of the deal, but any part of the deal is better than no deal.

Out of these, option 3 is by far most favorable to me, and I think it would be to the owners too.

Any thoughts and suggestions would be greatly appreciated.  

I have read "The Book on Rental Property Investing"  by him, and the one you mentioned is on my list...I kind of just forgot.  Starting it now :).  Thank you

Thank you Daniel for the reply!  I was not aware of a Master Lease option, and it sounds like a more appropriate avenue for this situation.

Thanks again!

I am looking into approaching a previous landlord with purchasing their portfolio via seller financing.  They are an older couple that owns multiple duplexes, and planned on passing down their properties to their children once they passed.  It is my understanding that their children are not interested in running a rental business, and would liquidate the assets once acquired.  As the years go on, the owners are less interested in managing their properties, but feel obligated to continue doing what they are doing for their children.

There are quite a few assumption on my end right now, but I think the right seller finance offer would be a huge win-win. My inexperience prevents me from understanding if it can be done and how to position it.  I think the right deal would give them the following:

1. Give them an out on managing the properties
2. Keep a steady income stream coming in for them
3. Allow their children to inherit what is deserved while avoiding large tax burden.

Has anyone done a deal like this?  Is it possible to transfer property right now, and avoid the tax burden once they pass or is that based off the date of sale?  Any input would be greatly appreciated.  

Greater Portland area, Biddeford/Saco, Lewiston/Auburn and potentially Bangor area.  I currently reside in Dayton.  Bangor will be tougher for me manage, but its my home town and I do have a lot of connections there.  

I am also extremely interested in connecting.  I currently have one single family rental, but am looking into expanding into multi-units.  

Hello everyone from Maine!  During this very unique social environment, I have had a lot of opportunity to think about what I want in life and the direction that it's going.  I have always known that my 9-5 would never lead me into financial prosperity and the social environment going on now has reignited my drive to remove that from my and my family's life.  After looking at many paths to reach my goals, real estate investing appears to vehicle that is going to take me there!

I currently have a single family home that I am renting to a family member.  It used to be my old home.  I did make a mistake at renting to family, but I have the lease work out to break even on the property(tenant pays for everything including repairs, taxes, lawn care, ect).  There is a large garage that I retained use of and have a plan on storing vehicles at for the winter in, which I estimate will net 900-1200/year.  I plan on using the equity in this property to help finance a multi-unit.

I am on here to learn everything I can about this world.  I know how important networking and finding the right tools are, and I hope this forum can help me find what I need.   I am extremely excited about all of this, and I am sure I will be asking a lot of dumb" questions while I learn how to be successful in this field.  Thank you everyone in advance for your help and patience!