Attract Investors for $1.1M Fourplex Property in Ontario, Canada

[Aaron Deacon]

Hi everyone, 

My name is Aaron Deacon, I am 22 years old and am currently looking to pursue real estate investing (focusing on multi-family dwellings). I have had my eyes on the market for about a year now moving from interest in single-family homes to multi-family dwellings as of recently for the convenience of creating cash flow and also providing yourself an area to live. I currently work as a HVAC designer/energy auditor for commercial, multi-residential, industrial, and institutional buildings in Canada. I make $40,000/year and have never owned a credit card (have always been told by my father not to get one, but am soon realizing the need when investing in properties). The main concern of mine is the down payment for the property. Here we have a corporation called CMHC (Canadian Mortgage and Housing Corporation) which allows a buyer to pay a minimum down payment of 5%. From what I have read, one of the best parts of investing in a duplex, triplex, or four-plex is that they all fall under the same jurisdiction as a single family residence but with better tax benefits. 

All of that aside, the reason I am writing this post is to look for people who have had experience, or are currently investing in properties through other peoples money (investors) to help/finance all of the down payment for a more expensive property (such as the four-plex in question). I have many contacts in which I can raise the money for a 10-20% down payment for this property. I just want to know what rates to offer your investors to make it attractive, how to manage payments to the bank for the money you have loaned, as well as monthly payments to your investors, and whether it is worth leveraging the 5% down payment in order to payback investors more quickly and get back to collecting the monthly check from tenents to pay back the bank loan, or to find 10-20% and decrease monthly payments as well as overall interest in the long run but have a larger payment to investors. The investors I have are all close relatives or friends which i believe will help in getting a lower rate from them. 

If anyone has any advice, or teachings from recent/past experiences with this it would be greatly appreciated. 

Thank you, 

Aaron