Funding/Loan Options

[Account Closed]

Hello BP,

A trusted REI mentor of mine has come across a deal that would entail purchasing a 50+ group of rental homes from someone who is cashing out of the business.He and another investor would be purchasing the large share of the portfolio but will need to find a few additional partners for the remaining share(s).

I am just beginning my journey in REI so I don't have a much in the way of equity. I would like to borrow somewhere between 170K – 340K depending on APR and Term Length which should positive cash flow from day one.Not sure if relevant, but I have no current mortgage in my name.

I understand on a conventional loan on a single home is secured by the home itself.But would the shares of this REI business entity be viewed as something that can be secured against?Or would a lender view this a small business loan or something similar requiring a prospectus and/or business plan?The REI entity has not been created yet but before I expressed interest I wanted to do a little research on funding options.

I guess my high level question is what type of loan or creative money options would I qualify for?

Thanks!!