1st Self -Storage Deal. I NEED Advice

[William Coit]

I’m a newbie in the self storage business and I’ve managed to negotiate a deal that includes seller financing. Here’s the deal: Purchase price - $900,000 Down Payment- $500,000 Balanced financed by owner $400,000 Terms 3 years interest only @ 6.5% Earnest Money $10,000 Due Diligence 45 days Closing on or before October 23, 2018 My situation: NO capital to invest, bad credit. How do I close this transaction without putting any money down?

[Michael Wagner]

Clearly you will need to raise the $500k privately given your current credit situation. Your best bet, in my opinion, is to bring in one or more equity partners. Is there enough profit in this deal for it to make sense if you give up half the equity? My thought is, you do all the work and sign for the $400k seller note. The money partners put up $500k for 50% of the deal. In my experience, the deal will need to net the investor somewhere in the 15-20% range to get the excited. Can this deal handle that?  What's the projections for annual cash flow and Value after say 3-5 years?