Looking for funding

[Brian DeLuca]

Hello, I am looking for funding to purchase more multifamily properties. I started out with a duplex (Drexel Hill, PA) and purchased a fully furnished quad (Berwick, PA) that is listen on AirBNB and other sites. This property currently brings in double the mortgage payment. 

I am a veteran, there for both my mortgages are VA mortgages. Great loan products but the downside is that I have very little equity to take out in the form of a HELOC or cash out refinance. There for this is not an option. I work a W-2 job as a respiratory therapist but it will take me longer than I want to wait to build up enough money to purchase another multifamily home. I stay away from single family homes.

I am currently an active investor because I work 3 12-hour shifts affording me to spend majority of my time managing my properties (I have 4 days off from my W2). I want to scale quickly to be able to reduce my time at my current job. I am having trouble getting enough business financing because they claim that real estate is a risky business, and most places will not lend money for this sector. I did get an offer for a cash advance, but it was only for 10k (obviously not enough). I am looking for an investor or anyone that knows or wants to help me finance my next deal.  I can get the cash back to you in short period of time once the property is closed on. 

[Stuart Udis]

It seems like you are looking for 2nd position or mezzanine type funding to satisfy the gap after the traditional financing. My advice is to be cautious, particularly in this high interest rate environment. I understand what you are trying to accomplish, but there are other ways to scale that are perhaps more sustainable and less risky than using so much leverage. Using so much debt is like playing with dynamite & its only a matter of time before you blow off a limb. I would recommend offering membership interest as opposed treating the funding you seek as debt. You will be under less pressure to repay the funds if structured correctly and it will also be more advantageous tax-wise for your partners and perhaps open the  door to more relationships.