Seperate Bldgs - Package Deal
One of my brokers in Colorado has approached me with a deal that he has just listed. It is for 3 seperate apartment buildings, but the seller is offering a discount to take them all off his hands at once. They are all 6 to 12 units ranging from $195K to $500K in price (discounted price - 83.5%).
My thoughts are this (this is not the real numbers)
$600K appraised value of all three
$500K asking price for package deal
$480K is 80% LTV.
Ask the seller to take back 20% of the appraised value or $120K. Have the carryback structured so that there is no payments and in 4 years I can buy the carryback note for $30K or payments start. (seller gets $510K in 4 years $480K now + $30K later, instead of his $500K asking)
Any other thoughts on this? Any other ways you might structure this deal? Will a lender do this? 100%CLTV
This would be my first apartment building that I would have to finance to purchase. Also I am assuming I would have to do 3 seperate loans.
Thanks for any suggestions.[ Edited by dnvrkid on Date 03/07/2005 ]
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