Found a (Great?) Deal - Now What?

[Andrew Taylor]

Okay, so I've located what appears to be a great deal (see my post on the deal analysis here). I've got my wife's buy-in, and in fact she is taking a day off this week to view the property and meet the seller with me. I've spoken at-length with the seller, and (for what it's worth) we seem to have really good rapport. So far things are looking good.

I've analyzed the heck out of the financial data and I'm pretty comfortable with it. I've spoken with a local institutional lender and gotten a summary of his loan terms. Things start to get tricky here. He'll loan 75% LTV or 80% LTC, whichever is less. So, at a minimum, I'm going to need to come up with 20% of roughly $2.6M.

This is where I start to panic. I have no idea how or where to find that kind of money. I don't have any friends or family who have that kind of jack to put into a deal, regardless of the projected return (currently 278%, which includes return of 100% of original investment plus cumulative cash distributions over a 5-year timeframe; like I said, this appears to be a great deal).

I've got a pretty deal package put together, with lots of information and spreadsheets (I really like spreadsheets), so if a random stranger said, "Hey, you got anything I can invest in?" out of the blue, I'd be prepared (fingers crossed, LOL). But I'm not sure what else to do with it. I assume it's bad form (and probably against the rules) to just blast it to all the BP members who call themselves lenders.

I'm investigating crowdfunding options as well, like RealtyShares.com and PatchOfLand.com, and while I wouldn't have any reservations about using them, frankly I doubt those are going to work out either. Won't they want a 1st-position lien? That'll conflict with bank loan. Won't they also want me to produce some kind of down payment? That's still going to be $100k too rich for my blood.

I hate to let a great deal pass me by because I can't figure out how to take advantage of it. I know somebody who's reading this will either have been in this position and overcome it, or will have an idea of how I can overcome it. I'm hopeful that I can find the solution before it's too late.