All Forum Posts by: Luis Tafolla

hello everyone,

here is the deal 

there's a person selling 2 apartment buildings totaling 25 unit at an asking price of 425k a piece. my only experience has been purchasing properties cash or with a 30% down payment commercial loan. my insurance agent happens to know these people and suggested a land contract. I've heard of land contracts but never actually structured a deal with them. I talked to the sleller and suggested it, he had never heard of it and is very skeptical but was not completely against the idea. I need to come up with deal that is very enticing to seller, and to me of course. here was my plan 

make a deal where he sells both of them to me with 5 year purchase plan however I would purchase 1 first in 3 years with the 2nd one 2 years after. I would go through my credit union with again a 30% down. by then I would have the downpaymeny as I currently have all of my capitol invested.

how would you structure this deal. the seller is looking to get the money sooner rather than later.

I can figure out the expenses and income. however I can provide it if need be..

thank you!

@Justin Sheley

I love Rockford, I love investing here. and I fully agree with everything you said!

@Pratik P.

well should be closer to 30k give or take

and to keep it conservative I'll probably rent it for 750 which is still pretty good.

the area is probably what would be classified as a c neighborhood  I think its pretty common. however with the marker rebounding I can see these type of deals are becoming more scarce.

Hi everyone

just closed on another deal. This bring my deals closed to 13 and 16 units total.

here are some numbers for you guys

3br 1 1/2 bath SFH 3 car garage

asking price 30k

accepted offer @ 22k

total money needed for closing 20k

money needed for repairs. less than 10k that's being conservative

should bring anywhere from 700-800 in rent.

let me know what you think.

@Ryan Howard

that's what im doing right now. im in the process of refinancing 4 properties that are fully paid for. I waited too long to do it though. in part because I was new to the idea. and I didn't want to have to use leverage it was a concept I couldn't wrap my head around until recently.

your strategy sounds pretty good. Good luck!

@ryan howard

as long as the numbers make sense. it sounds almost like BRRR which can be a great option.

if you can get it for 5k you could spent 60k to fix everything up and still make a nice profit since you said the arv is around 116k

also I cant tell how the inside really is from those few pics. looks like most of the properties I buy lol

Look for a portfolio lender.

@Jade Parker im also interested in this type of deal. how would this work though?

say theres an apt complex for 500,000 and you get the seller to a agree to a 5 yr balloon payment. what is the typical down payment they are looking for? do you have to make sure you are getting the apt at a discount so when you are able to refi you can pay it off? would you chceck with the bank before to make sure they would refi the property?  so many questions.

thank for the help!