Need some advice on an 18 unit where I need a money parner

[Sterling Seizert]

I am in negotiations with owners of an 18 unit building built in the mid 1970s that they have fixed up a lot (new roof, new cabinets, new windows, new flooring). I have reviewed the rent roll and expense statements and all looks good. The asking price is $936,000, but my goal is to get it under contract at about $850,000 (maybe $875,000). The owners want at least $100,000 down (they have a small mortgage left). The numbers are great (CoC 46%, Net Cash Flow about $46,000).

My question is this: how do I go about getting a money partner on this? What would the best way to structure this? I am able to offer about a 12% annual return for the partner. Is this too much? Not enough?

Help Please!

Thanks

[Scott Sewell]

Ditto to what Joe said, Sterling. But are you sure about that (COC) return? Sounds mighty high. Sure that's not your Net Operating Income? If it is COC, you might want to take another look and VERIFY that number. If that's true, why would they sell?