The art of the deal - How do I get this one done?

[Luke Grogan]

Help please! Any ideas are appreciated.

I'm trying to bring together a purchase of a package of SFR in a commercial blanket loan. The problem lies in my not having enough cash for the full 25% down payment required. Simply getting the seller to hold a second also doesn't work because it puts me at over 75% LTC and just under DSCR thresholds.

I'm hesitant to start shopping for equity partners, 1) because I don't know many, and 2) partnerships always tend to have an issue arise and not sure I want to deal with issues with minority partners, especially if their goal is distributions of capital too early in the deal...

Is there a creative way to keep the seller in the deal that doesn't lower debt coverage ratios or maybe puts a future buyout option into equity? Is there a way to pull about 5-7% more cash into the deal to get it done? I'm close to being able to make it work and not ready to walk away, but the price is not going lower, but the seller is willing to consider something flexible...