Looking to purchase a 16 unit for $500K...Need help with Creative Financing

[Kristin Whitfield]

Hi all 

We are looking at purchasing a 16 unit Building.  We have $20k to put down and I need some ideas for creative financing.  the property is a foreclosure and the previous owner purchased it for $750k.  It is well right now it is slightly bellow the market in Milwaukee .  I am a buy and hold , and want this for the long term

I am at a stand still cause I really don't want to contact my bank.  I need the challenge of figuring this out ...outside the the banking system.  I have great credit.  and I know the money is out there I just need to know where

Who do I go to to get the financing for the project.  It is cash flowing at this price.  

I thought about contact a hard money lender, but I am not sure.  I heard about Private money.  But I don't have any friends or family who have money to invest. 

Can you folks give me a couple of "tools" to put in my "tool belt" 

I want a Step #1 and Step #2 and Step #3 for the long term 

Thanks in advance 

[Will Barnard]

Jon is correct. Hard money is for short term and is expensive, most buy and holds will not support the costs of this high financing for an extended period of time.

Private money is an option, but also too expensive for the long term typically. Plus you would have to have already formed such relationships with people to form your own private money network.

I have no clue why you would not want to go to a bank for funding, for buy and hold, other than owner carried notes, this is the very best option. If you have good credit and the $25% plus for down payment! you are golden.