All Forum Posts by: Nick Patterson

Due to my "liabilities" of other apartment houses. My bank will not provide financing to me for a vacant 6 unit apartment complex.

Has anybody else come across this and what strategies did you use to push past? (Lease options, seller financing, etc..)

Thanks!!

The main reason for seller financing on multi-units is to bring the less than 20% to the table.

However, the problem is when refinancing in 1-2 years time banks will look at the original contract and value the property at that amount. So in reality its just delaying the downpayment.

Has anybody here had any luck with seller financing multi-units with bringing little to the closing table and being able to refi? What strategies work?

Chicago was insane this summer in the more affluent areas. In the last 3-4 weeks it has slowed a lot. No more multiple offers, more inventory and properties are now sitting on the market. While in June the would have been gone In seconds

Thanks Bill for the reply!

I'm not familiar. What is Blue Sky Management?

In terms of seller financing.

Jerry W, do you know any banks that would make that deal? How would a bank accept a 2nd loan as the source of the downpayment

How would that be structured?

Has anyone done this option for a multifamily.
Since banks will only refi on the purchase price, this is a loophole where you can try and obtain the property no money down..

1) Property is held in an LLC. You add your name to the LLC along with the seller.

2) Pay the seller monthly payments and take control of the property and day to day operations

3) Within a year or two refinance the property and pay off the seller the agreed upon price and take their name off the LLC. So now you own the property 100% with no downpayment.

Thoughts?

That's amazing cash flow. Are all 60 properties in the same area? Or all over the city? For 60 units I would hire an on site and let them live in a unit for free to handle the day to day. Then my management company would do the financials and manage the on site. Very easy.

I'm an agent in Chicago. I would just advise getting your own license and own MLS access and doing it yourself. Making commission on the buy and saving the commission on the sell