Structuring a multifamily property transaction

Five of my family members are shareholders in an S-corp that owns a 43 unit apartment building. They want to move on and sell their share of the business. How can the 6 of us structure the sale of the building to me in a way that allows them to get some cash now. The property is worth $2 million, debt is a $150k equity loan. The idea so far is to do a cash-out refinance for $800k+/- and bring me in as a shareholder. From there I'd be responsible for all the property management. Within 10 years, we would do another refiance to completely cash them out and I would get the shares. Does anyone have any ideas of how this should work? Are there any other ways to structure this deal?
In Selling Property - Asked by Jed B. - Oct 4, 2008
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Answer(s)

Charles A.
Owner/Investor
Scottsdale, AZ

That is the long-term solution to the situation but I assume you'd like to be in ownership a lot sooner than that? Is there a reason why you are waiting so long to take ownership? Why don't you contact me via email at cabroker25@msn.com and we can discuss this further?
Thank you, I look forward to speaking with you!
Charles Alexander

Oct 14, 2008
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Mark C.
Broker/Agent
New York, NY

This is a complex transaction. I would try to find a broker that has a proven track record of handling a situation similar to this because there are alot of variables (ie. tax). The Agent handling this will need good resources (tax attorney, accountant, etc) A national brokerage's regional sales director should be able to direct you to the right person with all of those resources.

Nov 19, 2008
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Tai L.
Broker/Agent
San Diego, CA

I know a really good firm that gives legal advices and structure deals. It depends in what city and state though. Not sure if I can help.

Aug 23, 2009
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