Financing a multi-unit complex

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Posted by Lanky on May 08, 2008 at 12:37:28:

I am keen to purchase an apartment complex and am trying to work out how to structure a no-money deal. I have a 25% investor partner.

I have figured out that if I put the property into a Land Trust on a subject-to (the loan is assumable anyway) and have the seller assign his interest to me (the trust) and pay him the 25% from the investor money, I should have a deal.

The only stumbling block I have is the repayment of the 25%. The cash flow can easily re-pay the money, but over a period of 10 years, and I don't think the investor is going to want to wait that long.

I could ask the seller to refinance the property (there would still be equity in the building after refinancing), so that he would get paid and the investor would get back their seed money.

Has anyone done a deal like this?


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