Jack, make sure you take a good look at the property financials and if you don't know how to do it, get serious advice from a lender to make sure the property will qualify for leveraging. Example: his NOI may be tanking and thats why he wants the cash...if you try to finance now the cash flow problems will be revealed. Or, the NOI will only qualify you for a 60%LTV, therefore you are paying too much. Please seek competent advice on the analysis of the propertys financials before commiting. Find a Commercial Realtor with a CCIM designation in your local area that specializes in Multi-Family for the most competent advice regarding the value and position regarding this property. Good luck.
Nov 20, 2008