"Good" Deals Hard to Find; Funding is "Easy" - or NOT!

[Jim Froehlich]

BP Experts,  First of all, please remember that "referrals for lenders or loans must be placed in the BP Marketplace"...so don't reply with that here.  However, since I've been doing part-time real estate investing the past few years, I continuously hear about how finding "good" deals today is hard, but once you find a "good" deal, getting financing is "easy".   I have a pool of 40 family/friend investors who are counting on me to bring good deals to table for potential action.  Lately, I've focused on places as diverse as AL, NH, and DC.  Banks are asking for 40% down to get non-recourse situations or ~5% loans, while my investors all want 15-20% cash-on-cash, and Hard Money lenders who give anything in 8-9% are hard to find.  So what really constitutes good deals and easy money in mid-2018??!  

[Omar Khan]

@Jim Froehlich The whole mantra of "find a good deal and the money will follow" is either said by newbies (because they read something online) or gurus who want you to pony up the cash to buy their program. 

As you're finding out, each leg of the real estate journey is hard. Even if you find the right deal, securing the right type of funding can be a pain. Even if you find the right deal and secure the right funding, you might run into property management issues.

Your investors (15-20% CoC) have unrealistic expectations. As a side note, the average stock market returns over multiple decades average ~8.5%. Investors in illiquid assets in fragmented assets can only hope to beat that average long-term.

40% down seems a bit high. What type of properties are you looking at?