[Curtis Frieden]

Curtis Frieden

Hey,

I was speaking with one of my buyers today and she mentioned that she has a property that she’s interested in selling in a fairly creative (seemingly) way.

She currently owns a 4 plex that is occupied and being rented at 5200/month. The seller is looking to price the property at around 1,350,000 (price could change) but carry a note for 1M of it and have someone pay 350K of it.

This is a nice house that’s been remodeled and like I mentioned, already fully rented. Obviously I would have to get more details about the actual property but in terms of structuring a deal, since I’m completely inexperienced in this type of a deal or situation, do you have any advice on what steps to take or if it makes sense to take something like this on?

Thanks!

-Curt

[DON WEDE]

DON WEDE

Curt,
If I understand you, you pay 350K down and she carries a million dollar note. Does not sound like a very good deal there.

Don Wede

[Curtis Frieden]

Curtis Frieden

Hey Don,

Yeah, that’s pretty much my understanding as well.

She wants 350K in cash and she will carry a note for about 15 years.

She didn’t seem super motivated so I think I’ll pass on that one unless someone has some magical ideas on it.

Thanks!

-Curt

[Jackie Lange]

Jackie Lange

The world is full of sellers who want full price. It is harder for you to make any kind of profit with these properties.

You need to find REALLY MOTIVATED SELLERS who are willing to take a discount to get their properties sold fast. You can make a lot of money with these kinds of deals

[Jackie Lange]

Jackie Lange

Also, the cash flow of $5200 a month is not enough to justify that $1,300,000 price tag.

This lady must be in la la land.

[Curtis Frieden]

Curtis Frieden

Thanks for your help – I figured most of this but wanted to post it and see if there was something I didn’t see.

I think my focus is going to be on what I set out to do, which is finding motivated sellers and wholesaling. This was just a deal that she mentioned so I figured I might as well ask.

Thanks!

[Jackie Lange]

Jackie Lange

Always better to ask. There could be an opportunity hidden there someplace IF you’re dealing with a motivated seller.