Posted by Anne on October 24, 2000 at 14:14:04:
James, thanks for your response. Yes, we will use a trust for each condo that we buy. I’m thinking about assigning our contracts or, preferably, selling with seller financing at a higher interest rate/selling price to enjoy the cashflow.
Anne
8 condo deal- comments? - Posted by Anne
Posted by Anne on October 24, 2000 at 11:36:33:
Hi All,
I have a seller who owns 8 condos who is willing to sell on CfD, financing 80%. The condos are priced right at market value, no deal except that we could get them without going to a bank. I currently own a condo in the same building that we bought cheaply ($6K less than what she’s asking) from an out-of-state seller. These condos rent quickly, and all 8 of hers are rented. The condo fees are quite high ($160/mo per unit).
I’m now trying to rent or sell our condo, and have gotten calls from people who want to buy condos. It gave me the idea giving her an option for a few of her units, and selling them rather than buying them outright. As we found buyers who would pay a higher-than-market value with financing, we could buy her condos with 80% financing, and enjoy the cash flow until the buyer qualifies for financing.
This is the only way I can think to make this deal work.
If anyone’s interested in the numbers I can provide them, what I’m looking for here is some help thinking outside the box. The seller’s motivation is she wants out of the landlord biz and doesn’t want the tax hit from selling for cash. However, she also wants her price, so I wouldn’t call her highly motivated. We can buy the condos separately or together, or just some of them.
BTW, my offer will be to get the deed, and she will carry a mortgage, not CfD as she wants. If she’s not flexible on this, we won’t pursue it.
Comments?
Thanks in advance,
Anne
Re: 8 condo deal- comments? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 24, 2000 at 15:57:18:
If I udnerstand you right, you are basically talking about buy, wrap, sell. Is this correct? It certainly DOES work. And you certainly can get good cash flow doing this. The one thing to remember is that in case of non-payment, you would be FORECLOSING not EVICTING.
Regards,
Mark
Re: 8 condo deal- comments? - Posted by James Harris
Posted by James Harris on October 24, 2000 at 13:18:07:
Have you considered putting each of these properties into a trust? Or, possibly using seller financing to sell to your prosective buyer?