Intro and some advice on funding a smoking deal

[Lucas P.]

So I've been reading the BP forums for a while and have thoroughly enjoyed the podcasts too, but this is the first time I've had a chance to sit down and take some time to write in and introduce myself.

My first US property deal was in 2010 which was a rental SFR in Phoenix. Got it as a seller financed deal for $20,000 down and I've been netting about $400pm ever since. Same tenant has lived there this whole time so it's been a good little earner.

A few months later I took a course with Dolf de Roos, this was when I was living back in Australia, and started learning about the world of rehabbing, flipping and wholesaling. It was a really eye-opening week and I met some great people. This was where I met my current partner who I've been working with ever since. There is a lot more to this story but this is the short version. I do not regret taking that course and I would strongly recommend everyone to invest in their financial education, but use your own judgement in determining if something you are told sounds right. This was one of the thousand great points I took out of that week with Dolf.

Since that course, I've teamed up with the best contractor I met in that time and started flipping houses. I came up with the funding, the contractor found and did the rehabs. This started while I was still living in Australia. I noticed that I could replace my income by doing this full time, so my wife and I up and left the so called "lucky country" (so called by most Australians, Engelo will know what I'm talking about) and decided to settle down in Scottsdale AZ and finally make this our full time job.

Haven't looked back since and haven't lost money on a deal yet thanks to the knowledge and experience of my partner. I'm still learning all the time and this site has been a valuable source of information. I really appreciate the time members take to post things up, answer questions and help out where possible.

Speaking of help, it brings me to my conundrum and question for anyone out there that has gotten this far. Where would I turn to besides the private money investors that I'm currently using to help fund an acquisition of a bulk SFR deal (10-15 houses)? I have a contract with a property trust that is liquidating some of its assets and have been able to negotiate a price at about 30% below market value. None of my investors are liquid enough right now to be able to help me out with this purchase and every other source, from hard money to portfolio lenders has been firm to lend a maximum of 80% LTV, but what it is in actual fact is LTC (loan to cost, not value). Every one of these lenders is using cost instead of market or appraised value, which I don't understand why my ability to negotiate a better price is ultimately killing my deal. One the flip side, if I wholesaled this deal to one of you guys at market value, I assume you would get the funding I'm ultimately searching for because you meet their criteria instead of looking at the deal for what it is. I've also reached out to some transactional funders and their products are not quite what I need.

Biggest frustration with this is that with the rehab projects I have going on now, I'm not liquid enough to take this down myself which normally I would have no problem. There have been a few peers that have offered a wholesale fee to pass this contract onto them so I'm not looking for interested buyers but it's such a smoking deal that I would really rather not have to wholesale it off, but I'm almost resigned to go that route. 

If anyone can offer some advice or point me in the right direction, I would be very appreciative.