All Forum Posts by: Triumphal Bridges

Thanks for your reply. It will be very hard to remove the middle man in this situation, as the middle man is the seller’s good friend. And the middle man is looking for some sort of commission from the seller as well.

Conventional loan on this property is not an option for me right now. 

The tenants she has in the units are long term tenants and they do pay and pay on time. The rents are just extremely low for the area for most units.

My forced appreciation would be to bring the units up to a higher standard: new flooring, appliances, paint, and possibly countertops. 
I will find an agent to draw up some comps for me. 
I definitely agree that the balloon is too soon for that reason. 

I appreciate your feedback. 

Greetings All! I need your help. Much thanks in advance!!

I have been presented with the opportunity to purchase a 5-plex SELLER FINANCED. The location is near California City, Ca. It kind of just feel in my lap. Here are the details.

Property: 5-plex commercial property. All 2bd 1ba. 786sqft per unit. Carports but no garages.

Year Built: 1979; Lot Size 6098sqft; Living Area: 3930sqft

Current Rents: 750, 575, 550, 550, 350 = $2775/mo..... Rents SHOULD be at least 750 for all units = $3750. The owner never really raised rents. 

A 4-plex in the same area (2bds, 1.5ba) recently sold for 375K ($93,750/unit). So, if no major repairs are needed, Id guess the property should be worth ~$450,000. My offer is contingent upon full pro inspection.

My Initial Offer: Purchase: $375,000 Down payment: $20,000 Interest Rate: 3% Amortization period: 30yrs; Balloon in 10yrs 6 month moratorium on 1st payment (to give me time to vacate and upgrade at least 1 unit)

Sellers Counter Offer: Purchase: $395,000.0: Down payment: $60,000.00Interest Rate: 6% aprSeller to carry the balance of $335,000.00 amortized over 30 yrs.Balloon of full balance in 3 years option to extend 1 yr if needed.Monthly payment: $1675.00 interest onlyNo repairs.First payment due 45 days after the close of escrow.

I am not working directly with the owner. I am working with a mutual friend of the owner, whom is also a real estate agent. She does not have a lot of experience with seller finance deals.

She did hint at me the other day saying that the owner needs at least $35000 down to make the deal happen. Just last week, it was $50000. lol

I am looking to put as little down as possible.

Please let me know if more information is needed.

What do you all recommend my next counter offer be?