Private lender for down payment for Master Lease on $20k/yr rent?

[Tony Carter]

Hi everyone,

I found a deal that can annually generate $17k annually in rent, @ 100% occupancy, AFTER taxes, mortgage, maintenance fees, internet, utilities, etc.

Plan: Master Lease Option property with a downpayment ($15K) from a private/hard money lender. I can make $300 monthly cash flow and still pay the lender back in 15 months (If 15K @ 15% interest totaling $18,450). I'd need a clause where the owner cannot sell within 36 months?

Cons: None really?! Just only making $4500 the first 15 months...

Issues/Questions:

1. What key things in this deal would attract a private/hard money lender?

2. Can I propose a master lease option with the current owner if I can secure $15k down through private lending? I have 5 solid references (and confidence) of my property management skills for keeping properties occupied.

3. In a hot market like Toronto with over 17% increase in price since last year, what would be the seller's motivation to work with me and not sell the first chance he gets? I assume Hands-Free steady cash flow?

4. Even if I can get a 36 month master lease option, I doubt the seller will want to hold on to the balance (over $200k)? Would he? If not, how do I fix this?