Getting It Together
i have a seller who owns a restauarant , gas station/mart. along witrh sausage making equiptment including the recipes (popular until health broke down. they are looking to sell (due to health and age).
i am extremely interested.
i have low ficos (500-550 middle)
the pieces (motivated seller and buyer) are there. how do we assemble it given ficos and no money are part of the equation?
property may be undervalued cosmetically. potential income there for businesses.
where do i start?
i am eager and willing to roll the dice...looking for some guidance and input on my way to the closing table.
The traditional answer to this question is to get the seller to carry a note or buy on Articles of Agreement. You are in prime situation for that kind of deal since the seller has a business he knows to be profitable if you work hard at it. Now you have to convince him you will work hard.
can you expand?
what type of articles of agreement would you suggest for starters?
i am willing to be present to show him i am willing to work at it. actually he did mention that you would profit if you were willing to work.
initially he said he would not finance...i am thinking that with cosidration of his health situation and in addition show him i am committed to being successful he will then roll out his real-deal! or at least become more confident in restructuring.
I am very sorry to hear of your pedicament. Your positive attitude shines through because you are taking action and determined to get back on track.
I would suggest that you find a real estate investors club near you & pitch your idea & see if there are any takers or if your solution just needs a little tweaking to get an investor interested to work with you.
I wish you & your family the best
realtor. ask for an open listing so you can negotiate %,or if buyer has good credit create mortgage and sell to note buyer.
just add and/or assigns after your name on option to purchase contract.
Thanks for the input Sanjo
In the course of buying and selling real estate, partnerships are formed, alliances so to speak. In the course of these partnerships, investors often obtain a mortgage in one persons name or the other. We have all done this. This is a means to and end. I know people in our local riea club, who have a syndicate of 5 or so investors, who flip houses back and forth for different reasons, I.E. to get away from the hard money loan once the rehab is done.
If you are a new investor and you are approached to do this you should ask your self some questions:
1. Am I a partner or just the borrower, You have most of the risk , you should get some of the reward.
2. The person who wants me to do this, why cant they get a mortgage in there name? If its due to too many properties in their name already , okay, I understand. If its due to the fact that, they do not like to pay there own personal bills and have bad credit then think about this, if they have so little regard for their own credit how much will the value yours? Do they have bad credit due to something beyond there control? If they have bad credit are they trying to fix it? Ask to see their credit report and balance sheet. Listen to this, in real estate there is a lot of money. Where there is money , there is greed. Do not rely on the fact that they show you a check or some piece of paper showing that they are successful. Anyone with a scanner can do that. I am not saying look for the monster under the bed every time, just be diligent and see who you are getting involved with.
3. What is my recourse and protection? Is the property staying titled into my name or a land trust I have no control over? Who sends the check to the bank? If its the tenant, ask the investors how well that worked.
4. Does this person have the means to carry the payment? If the investor is robbing Peter to pay Paul, try not to become the next guy in the pyramid.
5. Numbers, numbers, numbers. These are the deal, not salesmanship. A 95% loan on an investment property that is intended to be a flip makes no sense, unless the buy is strong. If the numbers are not there then run.
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MT
S.W. Florida Property Solutions LLC[ Edited by MikeT1013 on Date 12/22/2006 ]
set a simple price 50.00 per unit
they cover any expenses or repairs to the properties. get it in writing
VIKROG,
What would you expect for that $50?
There is the old saying "Your price...my terms" or "Your terms, my price" See if you can negotiate for the seller to carry some paper or for less down.
Sure if you and your partners have equity and/or collateral and are willing to personally guarantee. I arrange these for investor clients a lot.
Once you purchase the land, a large percentage of the equity can be used as a down on your development financing.
Let me know if I can help!
Susan