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Updated about 8 years ago,
Finding money quick to fund a deal
I found myself in a conundrum. I've been raising funds and keeping my eyes open for a buy and hold deal for Q1 of 2017. But I found a deal faster than I could raise funds, apparently.
A few days ago I found what looks like a great deal on a duplex from a wholesaler. The numbers look great, but the area I would classify as a C-. Probably the nicest block in that C- neighborhood. The Cap rate is hovering just under 18%. I figured for current slightly below market rent (I would inherit long term tenants in both units), 12% property management, 10% vacancy, and 14% CapEx and repairs. Even with that, the cash flow works out to over $450/mo.
But...
In talking with the wholesaler, I negotiated the price to a feasible mount for me, but is still about 10K more than I can scrounge together from my personal accounts (not including credit cards). Does anyone have any suggestions about what I can do to acquire an additional 10K to fund the deal in less than a week? How do I bring up to friends or family to potentially be a private money source?
Also, is there anything I'm not considering? Did I leave something out? Should I even worry about this one, or pass it up?