Thoughts on how to structure deal with potential investors

[Chris Schady]

Hi all-

I was hoping to get the Community's take on the following scenario...

I am looking to acquire my 5-6th units via a duplex. This would be a solid property in a good area consistent with my portfolio to date. The property is rock solid, but not a lot of room to gain intrinsic value thru rehab, but an opportunity to increase under market rents. Plan would be to buy and hold for 5+ years. At the end of year one, projected Cash on Cash would be about 9% based on 25% down on a 30 year note. So here lies the question... my goal is to scale my business while preserving as much of my own capital as possible... how have people gone about this? Any creative ideas?

Also, I have a few friends who are interested in investing in real estate with me... how would/could you structure a deal with them given the situation described above based and based on them investing 25% to 40% of the asking price? Again the goal would be to provide them with an attractive package, while still allowing me to profit off the property and preserve as much of my capital as possible?

First time with facing this situation of private financing, so any/all information is appreciated.

Thanks!