Abandoned 12 plex found

[Brenda Whittaker]

I have owned multi family in the past and accidentally sold them, a major major life regret. Looking to get back on the horse after 20 years of beating myself up over so ignorantly selling the golden goose I had. I found a 12 plex that has been abandoned. Its fairly new but neglected. I am doing analysis on it however I am stumped over the down payment. A 12 plex can be asking as much as $100K per unit in my area, so even if I can get the numbers to work and a lender likes my property portfolio, how can I find the 20% likely needed for a multi family property? 20% can be in the $200K's. Where to start? Find a private lender and work the numbers to make sure he gets a decent rate of return that fits into the deal? What ROI might a private lender who I would seek for down payment funds from expect? What is a good enough rate right now, my guess 8% on the low end? How do I market this and where? I would love to save this complex.

[Michael Le]

I don't believe your bank will allow you to borrow your down payment. They want to see you with skin in the game. So likely you will have to have the person providing the money sign on the loan  and they will likely want equity in return for that. At that point, you have to decide what you are bringing to the relationship and see what percentage of the equity you would want if you were in their shoes.