How to finance a multi family (11 unit) using OPM??

[Timothy Howell]

What are some of the best ways to finance an 11 unit multi family home that cash flows positively and is 100% occupied using OPM (other peoples money : ) ???

[Scott Morongell]

Originally posted by @Timothy Howell:

@Scott Morongell Great insight Scott TY I'm not familiar with syndicating real estate, all tho there are plenty of syndications in the racehorse world, so I'm familiar with the concept lol. How are syndications typically structured and obviously I would have to build the network to invest into a PPM correct? Owner financing could be my winning ticket here, Is it a common scenario for the owner to leave 25% in and finance 75% with a lender? 

 Yes, it sounds like owner financing would be your best bet and leave you with most of the ownership at the end of it. Syndications can be structured in many ways. 2 of the most common ways are a straight split and a preferred return with a split thereafter. 

ex 1. 80/20 split (investor gets 80 cents and you the GP get 20 cents)

ex 2. 7 pref with a 70/30 split thereafter (anything over 7% gets split with 70 cents going to the investor (LP) and you the GP get 30 cents)

These numbers can be made up any which way. It all depends how cheap of equity you can attract.