Posted by David P. Butler on September 24, 2007 at 11:24:06:
Hello Brady,
As we like to point out frequently, often, “It is not the answer that enlightens, but the question.” ~ Eugene Ionesco
Not just “any” ideas would be a big help - but those ideas that accomplish two clear purposes here:
- best meet your objectives and constraints, while also
- best meeting your seller’s objectives and constraints
Though you were not clear, sounds like part of the issue might revolve around front-end cash? If so, in what way - are you short cash to meet seller’s objectives; or just short cash to meet seller’s objectives, and still have sufficient funds to do improvements or “Other” that you expect as necessary to increase the cash flow?
Also, why do you envision the LO being an easier “in” per se? What are seller’s objectives per se?
Real estate transactions are simply a matter of trading benefits between principal parties.
BTW… many small commercial RE deals are put together with lease-option agreements, as well as contracts for deeds, straight installment sales, and Land Trusts - among others.
Strategies tweaking these can include various types of common deal “sweetners” that if well-thought through, and carefully tailored, can go a long way in making a deal fly, that was perhaps borderline otherwise. The key to getting a nice bowl of Sugar Pops is knowing the objectives and constraints on both sides of the table.
Great way to start… ask the seller if he would be willing to lease - and be ready to explain why you are asking the question. And think it through far enough to be able to suggest why it may be a benefit to him?
Why is he selling now?
How much cash does he need?
What will seller do with the cash?
What are his expectations?
(of course, that is much easier to do if you have at least some kind of handle on what his prime motivation is at this time, or even a lesser motivation it that’s all you can get at this stage.)
The above suggestions will prove to be very valuable to you at this point… and look forward to what you come up with. Best wishes for your success and…
Have Fun For A Living!
David P. Butler
www.hotspurinvestmentgroup.com