Most people will not let you touch a house before closing, for liability reasons if nothing else, but there is no harm in presenting this idea to your seller. You are basically offering to get the property sold for them in a set period of time, and they keep your earnest money and the house is fixed up for free if you fail. I could see myself going for this deal if it was presented properly...
Would be interesting to know how this was done. Can you share? (Seller forgiveness?)
Quote:
On 2007-05-04 21:51, woodsong wrote:
we just closed a commercial property with 100% owner financing with not a penny down. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
I did an 11 unit (10apartments and 3000sqft commercial) deal.
seller held 25% note. Bank financed 75%.
Rents were low. Got a 20k investor loan for the downpayment.
I negotiated with a distressed seller who was around the corner from tax sale. I paid their 10k taxes in return for them releasing the 25% note. Yes a real rsk BUT relationships and trust level were high and it worked fine.
I then held it for 4 years and just refinanced it out, pulled out 20k to pay the loan back, 20k for another project and improved the cashflow to withstand this kind of strategy. Hope that helps...
I have done a deal where we did a lease purchase on a property, used our cash to do the repairs and we put it back on the market. The seller got what he wanted (no more house payments) and we were able to make the deal work for us. Just be sure to document any work and money you have put in the house.
property has only 4 years left on a ground lease w/o renewal
property is a cash cow
due to the 4 yr term, financing was hard to find. did a search and consulted someone from here (Thanks commercialking)
and now I have a couple financing offers including one from a Hedge fund.
we just closed a commercial property with 100% owner financing with not a penny down.
woodsong:
awesome. can you give us the details? can u include location and how you found the deal?
"You can learn all about it in my No Money Down for commercial real estate book I have for sale for only $29.99."
woodsong, I was so disappointed in you- until I got to the next line...
Chris
LOL,
Very funny woodsong
Seriously Thank You for the post.
Anyone else? someone out there has to be doing deals or Im getting into the wrong business
Michael
Most people will not let you touch a house before closing, for liability reasons if nothing else, but there is no harm in presenting this idea to your seller. You are basically offering to get the property sold for them in a set period of time, and they keep your earnest money and the house is fixed up for free if you fail. I could see myself going for this deal if it was presented properly...
Chris
Would be interesting to know how this was done. Can you share? (Seller forgiveness?)
Quote:
On 2007-05-04 21:51, woodsong wrote:
we just closed a commercial property with 100% owner financing with not a penny down. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
I did an 11 unit (10apartments and 3000sqft commercial) deal.
seller held 25% note. Bank financed 75%.
Rents were low. Got a 20k investor loan for the downpayment.
I negotiated with a distressed seller who was around the corner from tax sale. I paid their 10k taxes in return for them releasing the 25% note. Yes a real rsk BUT relationships and trust level were high and it worked fine.
I then held it for 4 years and just refinanced it out, pulled out 20k to pay the loan back, 20k for another project and improved the cashflow to withstand this kind of strategy. Hope that helps...
Housemouse:..How did this deal turn out?
[quote]
On 2007-05-10 10:51, Housemouse wrote:
[ Edited by Taxivestor on Date 08/05/2007 ]
I have done a deal where we did a lease purchase on a property, used our cash to do the repairs and we put it back on the market. The seller got what he wanted (no more house payments) and we were able to make the deal work for us. Just be sure to document any work and money you have put in the house.