Funky Wraparound, and First Position Seller Financing.

[Matthew Fiebig]

Hello Bigger Pockets!

I have this deal that I'm looking into. It contains a mobile home park, a few Single Family Rentals, and a 6 unit apartment building. The Seller is willing to provide a wrap on the SFR and a 6 unit apartment building. The seller owns the Mobile Home park free and clear, and there is about 840k of mortgages left on the SFRs that the owner is willing to do a wrap on them. I got out of the owner that he is willing to let all of it go for about $700k net and he is willing to do a 500k FIRST position seller financing.

Would I be able to use any sort of secondary financing to raise funds for the final 700k to close this transaction. I would think it would be easy enough if it were financed across the $2M dollars which would provide a 35% LTC, But if I could only finance against the Mobile Home park which is valued at ~1M that would make it a ~70% LTC which I don't think I could get.

Additional info:
Some of the SFRs are owner free and clear, and some are rehabs that need some TLC to make them rent-able, but it all cash flows positively.

Suggestions?

[Champak Shah]

If possible --break it down to three separate transactons --a) SFR --free and clear --let owner do 100% financing or master lease for three years -- what is purchase price and ARV ? how many homes ? b) 6 unit apartments --if there is enough income and all untis rented --may get short term loan -say 70% LTv first and let owner take second --may be private bridge loan or hard money -
c) mobile home park--this may be tough --but get 50% first and let owner carry second for five years --then refinance later -- must have good cash flow -- to carry thorugh -
and yes-- Equity Lenders --private lenders do deals --howeevr this may be too small for them --Best is syndication or " Private Placement Offerings" -- which requires an LLC and approx $15,000 for attorney fees . Then raise funds -- need a business plan.