1M in funds but no experience

[Sean P.]

In approx 18 months I intend to invest in multifamily as an active investor. I will have access to ~1M in cash for down payment and closing costs (I would also have reserves, separate from this capital). However, as I learn more about commercial loans, I’m discovering that lenders will require experience with similar types of investments, as well as net worth and liquidity requirements. Short of spending several years building experience with smaller deals, what would the folks on this board recommend?

Investors: should I partner with someone, harnessing their experience (and net worth/liquidity)? I’m not interested in being a passive investor and relying on someone else for the sweat equity. If I supplied the cash and sweat equity, how likely is it for an experienced investor sign on for a fee rather than a share of equity?

Mortgage brokers: are there commercial lending options that can work without experience? I'm generally familiar with DSCR loans – do they require experience? Interest only options would be ideal.

Is there a better strategy that I’m not thinking of? Would love to hear recommendations from people on this board.

• Credit ~800
• Presuming 25% down, but open to whatever numbers work out best
• Non-owner occupied
• Long distance (no specific geography selected yet)
• Professional management
• Leaning towards MHP initially, but open to apartments if the numbers work
• Priority is maximizing cash flow, especially in the first 1-3 years