Identifying lending options for commercial multi family investing

[Manoli Pahouils]

Hi Everyone,

I have been a fan of Bigger Pockets for a few years now. My wife and I live in Cleveland, OH where I work for a CPA firm and my wife works as a real estate/construction attorney. I have never posted in any forum before so this is my first time. My wife and I started our Real Estate investing journey a couple years ago. We started with a 203K FHA loan to house hack a duplex that had been foreclosed on. Everything went according to plan and with ease so, we decided to buy 2 single family rentals in 2020; one was an estate sale and the other was a foreclosure where we utilized the BRRRR Method. Again, everything went according to plan. We are now looking to scale up from residential and focus on commercial multi family investing. We have reached out to a commercial lender as well but have not spoken with them yet. I am not sure how detailed I should be in this post but essentially we do not have the down payment funds ($520k) for this specific 49 unit occupied multi family building in our home town area in Trumbull County, OH that we feel very confident on if we had the opportunity to take full ownership of. Our goal would be to have an investor, private or hard-money lender provide the down payment funds and take second lien position on the property in addition to bank financing for the remaining purchase price. We would prefer to make interest only payments for the first 24-36 months while we increase the rents in the building as we believe current rent roll is below market average, cash-out refinance and pay the investor their full principle amount.

Is this scenario plausible or possible? Do hard money and private money deals operate in this fashion? Does anyone have experience/success with this? Any and all advise would be greatly appreciated.    

Sincerely,

Two 33 year olds trying to exit the rat race.