Trying to grow to raising capital for multifamilies

[Dave Carter]

I’ve got 3 SFHs and one four plex. I’m tapped out of down payment money so I’m looking over the horizon to figure out how to raise capital from investors but feel a little stuck.

I don’t want to give up equity (I don’t want to bring on an LP and own 50% of a four plex when I could have just bought a duplex on my own)

If I’m paying 8-10% on a down payment loan for a few years I have a hard time making the numbers work.

My thought is borrowing the DP, upgrading the units as needed, raising rents, and refinancing in 2-3 years, pulling out cash to repay the loan.

What’s the best way to make this situation work? I hear often “you can structure it any way you want” but I can’t exactly figure out how to give a worthwhile return without spending all of the profits on interest. Would an investor typically be ok putting up 25% of the cash (bank financing for the rest) to own 25% of the building?

I’m hoping to use the stack method and get into the 6-12 unit arena but am not sure what kind of deal to pitch other investors on. Any advice is appreciated.

I’ve listened to Multifamily Millionaire numerous times, as well as most of the BP books. I’m not quite trying to reach for syndication level, but just my next small steps. Thanks!