Investment opportunity for 6-unit complex in Southwest, MI!

[Sherri D.]

Hello, I have under contract a 6-unit apartment complex is Southwest, MI worth $225,700 per the area cap rate. I am purchasing it for only $119,900 (53% MV). I have an investor willing to invest 60% of the purchase price, I am looking for a 2nd investor for the remaining $47,960.

Because this investor would be investing the smaller amount they would be awarded 2nd lien position in the property, but also because they are taking on a bit more risk with being 2nd lien position I am also willing to offer equity as well to help mitigate that risk. I am willing to offer 15% of NOI AFTER debt service payments for the duration of the loan and 5% of the equity received in refinance. I am looking for a 10% APR, 30 year amortization loan for 2 years with no prepayment penalty. These terms are also negotiable.

This is how the estimated numbers would look:

Loan amount - $47,960

Interest rate - 10% APR, 30 year amort. for 2 years yields total interest of $9,540.08

Monthly principle and interest payment - $420.88, payment total $10,101.20

Total loan payments with principle, interest and balloon - $57,500.08

Estimated equity payments for 2 years - $2,775.60

5% of additional equity at refinance in 2 years - $2,497.45

Total dollars received - $62,773.13 which is a 31% ROI (62.773.13-47960/47960)

I also have a detailed business plan complete with profit & loss and cash flow statements available upon request.

Please let me know ASAP if you know anyone interested!

Thank you!

Sherri Duncanson