Paying A Down Payment
Hello everyone, My name is Maxine. I reside in Richmond VA. I am helping an investor friend of mine acquire some rental properties with none of his own money. He has a option to purchase 8 rental properties for 320,000.00 with 64,000.00 to seller as downpayment. The seller is willing to hold the note for 15 years at 10%. What are some ways we can structure the 20% down payment? Any advise would be appreciated.
Maxine :-?
Anyway you want. This is a broad question and very hard to answer in one post.
Are you supplying the 20% downpayment and are asking how you should structure your agreement with him? Your question is not clear enough for us to offer any help without some clarification.
Dave
[addsig]
not your question, but.....
Does it cash flow with a 10%, 15 year ammoratized loan???
15 years would kill the deal for me unless the numbers were incredible.
Maxine,
What does it me '[you are] helping an investor friend'?
Who decided to purchase the option? When the decision was made what was assumed at that point about the down payment?
Will the seller be placing a note for on each of the 8 where the total owed them is split evenly? Could you sell one or more of the 8 to a cash buyer (cash or conventionally financed) so that you can release enough profits to then fund the balance of the deal?
What is your stake in the game? Could a money partner be brought on to fund the down payment?
Oh, do answer the other questions raised about the cash flow.
John
Quote:
On 2004-06-16 20:10, glo0505 wrote:
I am helping an investor friend of mine acquire some rental properties with none of his own money.
Any advise would be appreciated.
[addsig]
What I mean by helping him is that I am doing the research and office work while he works a 12 hour day job. I personally want to get into pre-foreclosures.
The cash flow is a little over $1300.00 per month total. The contract for deed is for all 8 houses (lump). Looking for ways to come up with the $64000.00 downpayment. Each house is selling for 50000.00 and all have tenents paying 600.00 -625.00mo.
Had thought about trying to offer the tenants the lease/purchase option but not nearly enough upfront option money would be collected to fund the downpayment.
Maxine