Posted by Andrew Smith (Phila) on May 30, 2000 at 20:38:19:
Check with some commercial lenders to see if they would finance a first mortgage for 75% with the seller taking back a second mortgage for the other 25%. I just bought 34 units back in March using this approach. The seller was happy to have a fast sale and get 75% of his money up front. The bank was happy as the appraisals and ratios all worked. I was happy as it cost me nothing out of pocket to buy the property. Good luck.
need help with a fantastic opportunity - Posted by mike
Posted by mike on May 30, 2000 at 18:13:42:
I hope somone can help me I been coming to this site for over a year and I want to get into rei but i have little sucsess I just discovered a small run down marina on a busy waterfront district the gentlman who owns it wants 325000 firm it needs at least 50000 in repairs and dock work most of which i can do myself I’ve worked at marinas all my life and my father is a builder I have researched it and it looks like it could be very profitable I just have one small problem- MONEY- My father can’t lend the money to me and the banks I talked to want alot of money down. The seller may entertane a lease purchase if I new how to structure it. I bought carlton’s course but it hasn’t helped me with this. It has always been a goal of mine to own a marina And even if I wanted to sell down the road the property value will always be rising especially after it is fixed up The place has a apartment above it also the i can stay at to save some money. If anyone has any suggestions it would be greatly appreciated!
Re: need help with a fantastic opportunity - Posted by Jose/TEX
Posted by Jose/TEX on May 31, 2000 at 06:56:36:
Mike;
Have you done a package on your experience with marina’s and your father been a builder, etc,
When I first started I did not have any money and since I was new at the business there were no lenders interested in taking a chance with me by lending money.
So what I did was write down all my education and experience and looked for a property that I really knew I could do the repairs/upgrades needed. When I found that property I made an offer to the Seller asking Seller to be my partner. On one deal, the Seller agreed and provided property and credit to buy materials and I provided all my know-how repairs, upgrades, etc. and when property sold Seller got his money and I got mind.
In order for this to work you must get Seller’s trust that you know what you are doing. Sometimes this works out better than getting a hard money lender, etc.
Just my 2cents worth.
Jose