Need help on how to structure a deal

[Dustin Barr]

I currently have 6 SFH as investment properties. I have been approached by a real estate agent that has a client want to get rid of 4 duplexes and 3 SFH's. Doing drive bys all look to be in great neighborhoods and in great exterior condition, except for 1. All are currently rented and cash flowing (Per my agent) I have used all my available funds to make the down payments necessary to acquire my 1st 6 purchases. I am looking to bring in an investor to help make this deal work. I have a few people that I think would be interested in helping with this deal.

How is a deal like this laid out? I am looking for the downpayment money of 30% and the bank is willing to loan the rest. If the investor put down the 30 (not sure if it would be cash or if they would finance the 30% against some property) I was thinking a straight split on the profits for the first 5? years and then I would re-finance? Do i offer to pay them X% on the money they put in? This part of the deal is new to me and I want to have as much info as possible before I approach them and meet with my banker

Most are family members that know what I am doing and that I am successful doing it. Help me out please!

[Jonathan Marcus]

@Dustin Barr Do you know why the seller is selling? If not, find out his motivation for selling such great cash flowing properties. Find out if he has a mortgages on these properties. If he has can they be assumed? If they can then all you need to come up with are the equity balances on each property. 

If he is selling because he is tired of managing the property but likes the income, ask if the owner will consider owner financing the properties; providing he doesn't have large mortgages on it. Or would the owner consider doing a master lease on the entire package, so he gets one check from you equivalent to his present net income; you make your money from the increase in rents and have a long term option agreement to buy at a great price. No banks needed on this one; just some cash to make the realtor happy. 

Lastly, the seller is most likely will be doing a 1031 exchange to defer his taxes; if you're able to buy the properties in the traditional manner, he would be looking to re-invest into a bigger type property. Great opportunity for you to potentially co-invest with someone who is cash heavy into a bigger apartment building.