You can try owner financing if the deal pays for itself. Maybe a local investor would fund the rest. going to be tough unless it a steal. "I always say if you cant find the money, its not a good deal." good deals always get funded!
I would not be looking at an investment that large until you have the money or the investor already. Maybe you could start with some quadroplexes, and then 1033 your way up to the the larges complexes.
I was recently talking to a broker who had access to programs that would provide an 80% LTV and up to a 15% seller carryback. The rates were OK, but the points and prepayment penalties were pretty high.
Find a flexible seller OR a partner with cash, collateral, or credit and it's an easy deal. If it's a good deal, the money will be easy to find. If it's a FMV deal, it will be tougher.
There's always a way to make a deal work if the seller is intelligent and cooperative. It would all depend on the structure of the 2nd. So there would have to be quite a bit more discussion.
But the other problem is this: If you're working with $50,000 on a million dollar deal, that may cover some costs but leave you tapped out to run the property.
So this would likely have to be a deal that really covers its debt and throws off some cash. IMHO.
The name of the site is Creative Investor, the $50,000 should not be considered and should not be exposed.
It is up to you to Negotiate this sale, transfer, option whatever it is that you are doing.
When I first came home I bought a height limit building which is nine stories. Earthquake you know. We only learned to build the really high ones after the 60's. It was loaded with garment factories all sewing away and making money. But the Union Bank tipped that they wanted to sell. So like a good little Investor, I went to call on all the other tenants. I charged them each $10,000 for the option to sign a lease for more money and a period of three years. They were happy to do so as they did not want to interupt their business by having to move. So armed with a proper downpayment I bought the building and the nice bank financed the rest. After all 30% down who needed credit. I could fly airplanes pretty good but credit, what the hell was that.
I always have a problem in translation but I think the word is Hutzpah. A most necessary ingredient in the field of Creative Investing.
So dear Sir, stick the $50,000 back in your shoe. Go Negotiate and the Sun will shine on your endeavors and well endowed over developed ladies will compete for your attention. Remember the admiration of women is fleeting but a good cigar! Now thats forever.
Lucius das honorary Luftmensch.
Oh sorry, in the camps there was always one guy an inmate, who worked both sides of the fence. He got stuff for the guards and he got stuff for the inmates in the pretty striped suits. On liberation day he was fat, in good health and had everything
He was called a Luftmensch. I have always aspired to his skills. .
Afterall....You have $50,000. How long did it take you to get that money? (3 years?) If so, you won't be able to do another deal for 3 more years. On the other hand, learn how to do it with none, and you can do 5 more this year. Which sounds more lucrative???
If a building cash flows enough to service a debt, there are ways to finance the deal up to 100% LTV.
The first approach is to make the offer in such a way you know a transaction like this can take place. The next approach is to find a lender that is flexible enough to work with the investor.
I like "Non-Recourse" loans. They're hard to find but they're out there.
If you need a little help finding them let me know.
I agree with the "Chutzpah" theory. The closest deal I had to that was a Mobile Home park that was worth 1.1 million. I did the deal with 100% private funds and out of pocket expenses were 9 grand that were borrowed as well. I ended up paying 900K for it after everything was said and done, and they threw in 10 mobiles to get me to seal the deal. In short it can be done by marrying the right deal with the right people. Think outside of the box and ask for everything. (IE Chutzpah)
You can try owner financing if the deal pays for itself. Maybe a local investor would fund the rest. going to be tough unless it a steal. "I always say if you cant find the money, its not a good deal." good deals always get funded!
I would not be looking at an investment that large until you have the money or the investor already. Maybe you could start with some quadroplexes, and then 1033 your way up to the the larges complexes.
just my .02
I was recently talking to a broker who had access to programs that would provide an 80% LTV and up to a 15% seller carryback. The rates were OK, but the points and prepayment penalties were pretty high.
PM if you would like his number.
you'd probably have to find 3 more partners with 50K each.
Find a flexible seller OR a partner with cash, collateral, or credit and it's an easy deal. If it's a good deal, the money will be easy to find. If it's a FMV deal, it will be tougher.
Rookie,
I just sent you a PM. Check it out and contact me.
Regards,
Mark
There's always a way to make a deal work if the seller is intelligent and cooperative. It would all depend on the structure of the 2nd. So there would have to be quite a bit more discussion.
But the other problem is this: If you're working with $50,000 on a million dollar deal, that may cover some costs but leave you tapped out to run the property.
So this would likely have to be a deal that really covers its debt and throws off some cash. IMHO.
The name of the site is Creative Investor, the $50,000 should not be considered and should not be exposed.
It is up to you to Negotiate this sale, transfer, option whatever it is that you are doing.
When I first came home I bought a height limit building which is nine stories. Earthquake you know. We only learned to build the really high ones after the 60's. It was loaded with garment factories all sewing away and making money. But the Union Bank tipped that they wanted to sell. So like a good little Investor, I went to call on all the other tenants. I charged them each $10,000 for the option to sign a lease for more money and a period of three years. They were happy to do so as they did not want to interupt their business by having to move. So armed with a proper downpayment I bought the building and the nice bank financed the rest. After all 30% down who needed credit. I could fly airplanes pretty good but credit, what the hell was that.
I always have a problem in translation but I think the word is Hutzpah. A most necessary ingredient in the field of Creative Investing.
So dear Sir, stick the $50,000 back in your shoe. Go Negotiate and the Sun will shine on your endeavors and well endowed over developed ladies will compete for your attention. Remember the admiration of women is fleeting but a good cigar! Now thats forever.
Lucius das honorary Luftmensch.
Oh sorry, in the camps there was always one guy an inmate, who worked both sides of the fence. He got stuff for the guards and he got stuff for the inmates in the pretty striped suits. On liberation day he was fat, in good health and had everything
He was called a Luftmensch. I have always aspired to his skills. .
Lucius
Lucius, I'm coming to really enjoy reading your posts! I think "Luftmensch" is going to be added to my 2004 goals!
Once again, Lufos has put it best. I agree 100%
Afterall....You have $50,000. How long did it take you to get that money? (3 years?) If so, you won't be able to do another deal for 3 more years. On the other hand, learn how to do it with none, and you can do 5 more this year. Which sounds more lucrative???
Thanks to all!!!
If a building cash flows enough to service a debt, there are ways to finance the deal up to 100% LTV.
The first approach is to make the offer in such a way you know a transaction like this can take place. The next approach is to find a lender that is flexible enough to work with the investor.
I like "Non-Recourse" loans. They're hard to find but they're out there.
If you need a little help finding them let me know.
I agree with the "Chutzpah" theory. The closest deal I had to that was a Mobile Home park that was worth 1.1 million. I did the deal with 100% private funds and out of pocket expenses were 9 grand that were borrowed as well. I ended up paying 900K for it after everything was said and done, and they threw in 10 mobiles to get me to seal the deal. In short it can be done by marrying the right deal with the right people. Think outside of the box and ask for everything. (IE Chutzpah)
Good Luck,
Kyle