Real Estate owner wants to get out, what do I do???

Hello Everyone, I have been grinding my wheels for about two months and finally my ship has come in. I met a gentleman who owns property here in St.Louis, he cannot do the management or upkeep his buildings anymore. Two of the buildings that he wants to get rid of are in pretty good shape and has offered to sell them to me. My initial offers to him was $0 down, zero interest, and I give a balloon payment for both buildings in 2 years from the date that I take over the building. Here is my problem even though I just purchased my FHA property in October of 2013 my credit is not up to 680 as needed in order to go through a bank, also working with a bank I would not be able to generate 20%-30% down payment. The seller wants some money as a down-payment he says he normally takes 20% down-payment, but he knows that I am starting out and he would do a lease option with negotiable terms if I gave a payment of $7k-$10k. I can get both buildings for around $120k, I believe I can get him lower he does seem to be motivated. He just wants to get out and not deal with realtors, banks, or tenants. What do I do? How do I get $7k-$10k. I want to buy and hold I do not want to flip, wholesale, or anything. This is the perfect opportunity for me. The rents are around $2600 per month. I can raise the rents because he has not done any updates in a while. How do I get the money??? I hear about all of the private money lenders where are they?? I need some good sound advise ASAP. I need to call this gentleman back next week. HELP!!!

Every seller wants a down payment. Keep that in mind when you are going after these types of deals. If you don’t have the down payment, you need to get a partner. If this is not a fix and flip, hard money is really useless. I would ask a family member or possible friend to partner up with you and help you out. They could lend you the money for a years time, until you can refinance.

Also keep in mind that you are going to need funds for repairs and maintenance. If you don’t even have that, you will run into problems. You need reserves for vacancies and maintenance. Or you will just end up selling them like this owner. Good luck.

Find out their problems and solution on them

First you need to find out their problem and the reason why they wants to do this and then find out any solution for their problems if you will be able to find out and try to resolve them.

Finding co-buyer best idea

This is an age-old question frequently asked by the newbie who’s looking for $.

Fact is there’s lots of $ out there but $ guy/gal needs to be sold on benefits or “what’s in it” for him/her.

If you’ll work on a sales pitch that can show the $ person how he/she can benefit from working with you and you show enough prospects, you can find that partner to work with you.

Approach I’ve used and seen used successfully lots of times goes like this:

"Look J.P., you’ve mentioned you’re not happy with what the banks are paying for interest these days and you’re not getting much use out of your IRA and I’ve got an idea for you.

I’ve found a great deal on an under-priced property where I can help you make much more $ than you are now…let’s look at buying it together, your holding title and putting up the $ and my doing all the work, then after you’re paid back we split the profits and do it again".

So I’d recommend you make a list and then get to work selling your deal to those prospective investors…doing this often enough might just make you wealthy.

Exactly my point, before finalizing this deal you should know the reason for this person’s haste in selling the property and if you’re convinced with the reason then you must go ahead with it. As far as down payment is concerned you’ll have to give it. Rest it’s up to you and the person you are dealing. All the best!