Private investors for equity co-investment

[Craig Jones]

I've got a $3.3M SFH, currently a STR that does very well. However, I've got *a lot* of equity tied up in it that I'd like to deploy elsewhere. $1.5M mortgage, 30-year-fixed at 2.5% so I really do not want to sell or refi.

I've looked at equity co-investment outfits like Point and Hometap, but the deal terms seem atrocious.  Hometap claims "no interest" but if you look at cash now vs. percent equity they'd take in a future sale, the implied interest rate is something like 25%.

Are there private investors out there who are interested in doing similar deals with better terms?  Also open to hearing other ideas for this situation.

[Chris Seveney]

@Craig Jones

Most private lenders will want 10%+ return so you mix the loans and you mine as well refinance it at today’s rates.

Could be a lender out there willing to go in lower.

[Ko Kashiwagi]

Hi Craig,

Have you considered putting a second position mortgage on it? That way you could get a loan on it while keeping the first. Rates will be higher than refinancing, but if you insist on keeping the first, this is a good strategy.

[Jake Andronico]

@Craig Jones

That's a great problem to have :) 

Have you considered venturing into multifamily in Northern Nevada? We've seen some of the best deals we've seen in years with mid-size multifamily because so many are staying on the sidelines. 

It may not make sense for you, but wanted to throw it out there. 

Best of luck to you.