The Simplified 3-Step Process to Large Multi-Unit Deals

Here is my simple 3-step process to multi-unit deals…

1) Market to Sellers Who Have Owned Their Properties for Ten Years or More  

This is common sense but the longer someone has owned a property, the more potential for equity. How do you find these owners?

One way would be to buy a list through a list company…  but that can be pretty expensive.

(FYI- HUGE MONEY-SAVING TIP BELOW)

I get all my lists for marketing through my local county courthouse in the “tax assessor’s office” and it ONLY costs $50 for each list.

So if you’ve been paying thousands for your lists, check with your local county courthouse first and save yourself some serious moolah.

2) Negotiate With the Seller to Take Back Most of the Financing

This is a lot easier than you may think.

On my first multi-unit deal (which was a 4 and 6 unit apartment building in Clemson, SC), the seller financed 100% of the purchase price.

Why would a seller want to finance their property?

Maybe for tax reasons. You’re only taxed on the funds you receive for selling a property, when you receive them. So seller financing is a great way to defer capital gains.

Maybe the seller has fully depreciated the property and it makes better investment sense to convert from owner to lender.

Maybe the seller is highly motivated and will take whatever offer they can get.

3) Bring in Private Money for the Cash Needed

Use private money for the down payment, closing costs, renovation, all costs associated with the deal.

And since you got the deal seller financed, you only need a small amount of private money in comparison to the purchase price.

And that’s it! Happy private money getting!