Hey, what’s going on everybody, today I’m going to be showing you exactly how to find a buyer for a deal that you have right now I just got a lead for apartment complex in Colorado, this isn’t a small town, I don’t have any buyers in this area. And what I usually tell you guys is to have buyers first. But sometimes you get deals that are in areas where you know, you don’t have a buyer. So you got you go find one. And that’s where you can wholesale that way, what I would do in this situation, and what I’m actually going to do is I’m going to go look on bachelor leads for buyers that have purchased properties for cash, or who have just bought apartment complexes in that area of Colorado or have this lead in the last 12 months.
And I’m going to reach out to them and ask them if they’re looking to buy anymore. And if they are looking to buy anymore, I’m going to give them the information after I vet them. I’m going to give them information about this deal. But before I give them that information about the deal, I’m going to run some comps, I actually saw some comps that one of my business partners had sent me this lead he’s ran so it looks like the apartment complex that they have is not performing very well the rents are very low, and they can be increased. So what I’m going to do right now live for you guys to watch is I’m going to call the owner of the apartment complex, it’s in a trust, I’m going to ask them if they’re open to terms I’m going to ask them if they’re open to cash, I’m gonna ask them, you know, what, what options they’ve explored to sell this property, see what we can figure out? And yeah, I’m gonna walk you through the whole process
Hey, Philip, how you doing? This is Nathan, I think you just got done talking to David the other day about your apartment complex?
Oh, okay. Yeah. Do you have a couple of minutes to chat? Or did I catch you at a bad time? Sure. I have a couple of minutes. Okay. Yeah. So um, David was able to kind of send me the the numbers about the apartment complex that you have. And I, I work in the Colorado area, specifically like in Denver, and pueblo. And like, kind of the bigger areas this property is, we’ve actually never done a deal in this area is Selita. Is that, is that how you pronounce it? So Salida. Okay, I was kind of calling just to get a little bit more information. I know, he gave gave me a lot of info on an Excel spreadsheet that he sent me, but I was kind of curious of what what’s the game plan for for you, you and your family going forward? Are you looking to sell this like for cash to an investor like us and just get it done quickly? Are you open to listing it and just waiting and trying to get like the top dollar? Just kind of curious, what what’s your goal is?
No, we’re not interested in listing it. You know, if if you’re an investor and you’re looking for an investment property and an up and coming Colorado mountain town, then it’s a good fit, and not not a good fit. So looking looking for a cash cash offer? Are you open? Just curious? Like right off the bat? I’m just curious, are you open to selling it on terms if we’re able to pay a little bit more than what we’d be able to offer on our cash price? Sure. Okay. Or do you own it free and clear? Or is there a existing? You know, there’s no mortgage on it? Okay. Have you? If you were to sell it on terms and we were able to negotiate something? Do you have a certain amount of money that are interest that you’d want on the property? Like for to make sense or be worth it to you? You know, my money markets paying close to five?
Okay, so 5% interest rate, and you have a certain amount of money down? I mean, for us, we’d love to get into these for no money down. But, you know, that’s not always the case. You know, if we can do, I don’t know, 10 or 15% down would be would make it worth our while. Yeah, totally get it. Yeah, that’s why I asked up front, just because, you know, sometimes the cash offers come in a lot lower. So we’d like to have other options available. So we’re thinking around 5%, and, you know, 10 to 15%, down in how do you know how long you’d feel comfortable holding that? Would you be able to do it for like, the 30 years? or less, we probably don’t want to look further out from 10. All right.
So what I can do is I can kind of come up with an offer that would make sense with those as I crunched the numbers. Do you have an asking price if you were to get you know, cash versus like, if you were to finance us and sell to us on terms?
You know, there are three people that that are the beneficiaries of this. It’s currently in, in a in a trust. Right,
right. So you’d have to assume you have to get everyone to agree on, you know, the offer that you guys all accept, right?
We don’t need signatures from all of them, but it would be nice to have their funding.
And I think David was telling me that, you know, three, three months, two years when you’d like to sell this so it’s not like from what I understand it’s not like needs to get done this month?
No, it doesn’t need to get done this month. But I mean, if we’re going to do something if you and I are going to keep talking about this, right, I don’t want to string it along, because of course, no, I totally get that. And are all the I think all of them are occupied. Correct all the units? Correct. But they’re all on month to month. So on the other hand, you know, it makes it easy. The thing about this building is, it’s one of the most affordable. I didn’t tell it’s really under market. Yeah, no, I can definitely see that you’re at six looks like 620. No. 700 is the highest one you got, that you’re renting. The building out for are one of the units. Right. Okay.
You know, if you have an investor who wants to do a project, the town is coming up. Yeah. So we might be interested in doing something along those lines. Yeah, that’s what we usually like to do is we like to go in and update each unit one by one, instead of like kicking everyone out and then raise the rents. That would be kind of one of the goals there. But yes, if you were able to hold the note, that would save us a lot of money. Do you by chance know what the rents? I see they’re like, ranging between 507 100 on this, do you know what we could raise it to? Sounds like you understand the area pretty well?
Oh, well, if you look around town, you’ll see that, you know, two bedroom condos, four blocks away are going for a million apiece, right? I mean, hotel rooms are tight. So if you if you look at those as sort of comparable rents, those are between depending on the season, between 150 and 200 a night? Yeah. So, I mean, it’s a resort town. Yeah. Right. Okay. A week this week, if you’ve never been, you should
go. Yeah, yeah. I’ve never been I live in Salt Lake City, Utah. And I’ve been out to Denver a couple times. But yeah, and then never been out here. Sounds sounds nice to what you’re talking about. Maybe I need to head out.
It’s kind of a it’s kind of like a park city without as much quite as much green. Not as much Hollywood.
No, I understand that. No, Sundance there. Yeah, not Yeah. Okay. Well, that’s awesome. I’m glad I talked to you about it, because it does sound sounds really like a nice area. Well, yeah, I guess all I need to really do is do my research a little bit more. I just wanted to kind of ask if the terms if you’re open to terms if you had a price in mind. So I didn’t come at you with some lowball offer that just I’m not here to offend anybody. So I didn’t want to, you know, do my numbers and make an offer. That was not even something you’d be open to, you know, I mean, well.
I mean, you know, the assessor has one price. If you look at the cash flow, that’s another price. You’re gonna have to come up with a proposal. Proposal. Yeah. Nothing’s crazy. Yeah. No, I totally get it. Okay. Well, I can do that. Is there anything else that you’d like to let me know? Or I should know, before, you know, run the numbers and come back with an offer? I can’t think of anything. Okay. All right, well,
I appreciate your time. And just to kind of be transparent on the strategy that we use this because we don’t live in Salina, we’d probably bring in one of our partners that lives in Denver to do the rehab and go in on the deal with us. So we probably have to like coordinate a walkthrough with them. And, you know, once once we get a little further down the line, but I’m sure that wouldn’t be a problem. Like, you know, getting a walkthrough set up and all that. Okay.
I have a manager on site. Okay. Well, Phil, I appreciate your time. And you have a good day and we’ll be in touch. Thanks. Yep. So they weren’t really giving me that much information when it came to what their asking price was, which makes it kind of difficult because if they give you a baseline, you know, at least like they’re in the ballpark or ballpark range. And usually if this was a single family home, I would just throw out a number but this is an apartment complex. So we’re gonna have to kind of see what buyers are buying in this area because I’m not going to buy this property. I don’t have no desire to own a property in salida or whatever the guy was saying what I’m going to do look for buyers see what they would pay for it and you know, take their offer and offer a little bit less to have my wholesale fee in there. And if it works, we got a deal. We just need to get it under contract they are open to terms which is really good. He said 10 15% down at 5% Market which is great because you know usually it’s a lot more than that right now with interest rates.
So if you didn’t understand a lot of that no worries about that you’ll you’ll get it over time but just know when you get a property even in a town I’ve never heard of what you do is you ask them what they want to sell it for you get that information and then once you see that they’re open to cash and they’re open to working with you and they’re some somewhat theirs some motivation you find out what buyers are paying you call make the offer if he doesn’t accept and you know, no worries, this process shouldn’t take you more than an hour to do and if it gets done this is a potential little Parma complex deals can be, you know anywhere from 30,000 100,000 500,000 Depends what price you get into. That’s the beauty of wholesaling. So I hope that helped you out. Check it out, always check out our channel. We’re always coming up with better new and improved content. So talk to you later.
