First Time Apartment Building Syndication

[Boruch Leivi Bartfield]

Dear BP,

I had a quick question:

I have located a tertiary market in PA.

I see a few 10 unit buildings that have a 10 CAP (at advertised) asking between 450-500k and NOI's of between 40-50k. On paper they have great value add potentials (mom and pop ran with below market rents).

Being that I'm butt naked broke (I only have 30k). My plan is to raise all the capital for the down payment, closing costs, and renovations. I want to up the rent to market value and then refi and hold.

I want to syndicate the deal at a 70-30 split, (70 to investors and 30 for myself). Once I refi and all the initial capital is returned to my investors the plan is to swap to a 50-50 split. 

I have raised about 200k in verbal commitment. (I wrote up a detailed executive summary and business plan to get the verbal commitments before locating the deal(s).

I'm pumped to go out and make this happen!!

However, the brokers have given me push back asking for proof of funds and for pre-appoval from the bank before they agree to show the listings and give the T12s. All I have are the proformas.

Does anyone have any advice for how I can get around this temporary obstacle?

Thank you!!!