A seller is looking at doing owner financing.I would be wrapping his note.Property insurance is not escrowed so that causes fewer issues.Sellers main concern is that we owner finance and in say 3 years I get tired and just give the property back to him.I am putting nothing down which he is fine with.Looking for thoughts and ways to make him feel comfortable with this issue.He owns other classes of assets besides apartments and is focused on them.I already own a bunch of other buildings in the area and told him I have staff on site so it wouldn't be an issue.This is for a quad building.Many investors buy with one thing in mind and then sell to you down the road for other reasons.Since I am a commercial broker I have multiple exit strategies already planned out for the property.

Thanks for the concern Jon.

What I meant with REO brokers is they are not going to sit and secure a crap property over and over with the low commission they are making in a high crime rate area.They get paid a set commission regardless of the price.So whether it stays secure is not a real concern to them.If they sell a 10k house but make 10% which is 1k the condition doesn't matter to most of them.If a 200k house gets trashed where you make 6k on 3% commission or 3k on where the house gets trashed and sells for 125k the broker would stand to lose a bunch of money in that case on the sale.You could argue the broker stands to lose money by losing other listings from the bank in more sales but I don't know many brokers that do more than drop a sign with these types of properties.

I'd be concerned with credit that bad.

The house even appraised out at 150k so I'm just under 60% LTV which is tremendous given how appraisers are really sticking it to us here in Illinois.Is there anything I can point to that would help ease the lender's concerns?

Since we're covering many different tracks and topic areas, I'm not that concerned about this.Now that we've got our new space, I've got to finalize a few things and will then we'll start working on the schedule and final session coverage in conjunction with our speakers.

As an owner of one of these, I'd be concerned about why are there ZERO tenants first?

Hey Jon, thanks as always for your wisdom :)To elaborate a little on your first concern, I've already talked with him about NOT doing ANYTHING without a title company, and he already knows the lender has to sign off on it, because they have to approve the assumption.He's probably the most laid back guy I've known, and it's not really an inconvenience for him to move.

(I am concerned that having no dishwasher + having to buy a gas dryer could be a big turn off to people)

And, if you're concerned that it won't be a "new" listing at the beginning of the year, expire it and relist it, as already mentioned.