RE: Creative financing - Posted by Samuel Addo

Posted by Mike W - LV on April 13, 2005 at 17:37:41:

I doubt the numbers the seller gave you regarding the total annual expenses are close.

Nationally, the total expense/gross income ratio is about 40 percent. The seller is telling you its HALF this amount. Right.

Why not have the seller back up his expenses by providing you with a note that reflects the low, low expenses. My guess is he won’t.

Just my two cents.

Michael

RE: Creative financing - Posted by Samuel Addo

Posted by Samuel Addo on April 13, 2005 at 14:10:26:

I want to make an offer for an 8 unit apartment in Houston,TX.
The price is $685,000 and has an annual gross income of $84,000 and annual total expenses of $17,908. The owner has annual debt service of $12,900. It is 100% occupied. I want to make an offer of $565,000 and ask the seller to carry 20% of that ammount. How can I can structure an offer the will look good to the seller. Any ideas?

Thanks
Samuel