I need solid advice!

I need solid advice!

Real Estate Agent · Steubenville, OH · Member since 2015 · 7 posts · 3 votes

Hello everyone, I am an aspiring investor in Ohio who needs help. I understand I do not have much on my account but please don't let that factor into judgement. I have been working on a deal now for roughly 2 months. It is a 6 unit apartment complex that is in great shape but needs some updating in the living space. I have done my due diligence and the numbers are great. I have been spending virtually every waking moment trying to get this deal to close. After offering nearly a dozen deals that include seller financing, the lady just really wants to get rid of it in a conventional manner. In short this is a deal any investor could not pass up on. From buying in with massive equity to cash flow to ARV this is a grand slam. The lady is not an investor and purchased it for a member of her family who wanted to invest and has since taken it back into her possession. I do not have the funds for a DP to purchase with a traditional commercial or hard money lender. Does anyone have any tips on how I can get the DP or know of any lenders or creative ways to finance this deal? I have been looking non stop and have pitched the deal to several family members but to no avail. I am willing to do whatever necessary to secure this investment but I simply can't get it done. If anyone has any further questions in order to guide me to serious help feel free to ask.

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  • Rental Property Investor · Saint Charles, IL · Member since 2014 · 304 posts · 222 votes
    10y

    @Stephen Callaway I would either JV with another investor where they supply the DP in exchange for a % of the deal, or wholesale the deal.

    Have you placed all the numbers in the BP calculator to show potential private investors what the deal looks like and how much of a DP you will need?

    Finally, you should either get a LOI or a signed purchase contract before approaching other private investors to help fund your deal, if the #''s are as good as you say and the BP calculator backs that up then you will find the $.

    Lock up the deal, post the numbers on BP and see what happens.

    Good luck!

  • Robbie ReutzelBusiness Member
    Real Estate Broker · Shirley, MA · Member since 2014 · 305 posts · 211 votes
    10y

    @Stephen Callaway, I 2nd what @Ashley Pimsner said about JV'ing or wholesaling or some combination of the two i.e. wholesale it for $5K on the front end and 10% equity going forward or something like that.

    Those are certainly the most straightforward ways and probably shouldn't be difficult if the deal is as good as you say.  You should definitely put together a marketing package to give to investors and just keep going to REIAs and networking until you find someone.

    Now, I'm not sure what your situation is but have you looked into a HELOC? Borrowing from friends/family if you can show them how good the deal is? There were gurus out there who espoused taking cash advances on credit cards to get the down payment money. I wouldn't necessarily suggest doing that but it has been done in the past with some success. Master lease?

    If it were me, I would be looking to JV with an experienced multi-family investor. Then make sure you pick their brain often and learn their systems.

    Good luck!

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