Multifamily Financing Plan

[Ian Dunross]

Hello everyone,

Hope everyone is doing well this weekend! I'm looking at some 6 - 10 unit complexes that require a commercial loan. The loan officers don't mind if I use my own money for the 25% - 35% down payment , or if i get alternative financing. 

I'm going to offer some investors i know two different options. Let me know what you think of this idea..

Option 1 - Investor extends a 2nd mortgage for the financing. Once the mortgage is satisfied the investor will have no other ties to the property..

Option 2 - Investor INVESTS in the property with me in exchange for a piece of the equity. To do this I'd require the investor to co-sign on the 1st mortgage with me. Their investment payoff would be tied to the actual cashflow of the property..

Both types of deals have their pros and cons, ideally I'd prefer Option 1 because I'd end up with total ownership/control of the property..

Would love to get your thoughts!!