Acquisition Funding for Notes

[Dave Blackman]

This one is more for the note veterans on BP -- I have an opportunity on two commercial notes from a small bank that cover several MFHs, a SFH and a Mixed-Use Office bldg -- it's an interesting one bc the borrower is a non-profit, communicative and will be doing a DIL for everything immediately upon purchase of the notes, which will allow me to acquire the 6 buildings at 55 cents on the dollar of what they're worth vs. buying them as REOs which would be upwards of 75-80 cents on the dollar. Some of the units are already rented providing immediate cashflow and light to medium rehab on each building will get every unit rent ready. The plan is to rehab, fill with tenants and sell as turnkeys to local investors (there's plenty of them in this particular market).

As I don't have a large JV network and since the acquisition cost is relatively high (low six figures), I'm having a hard time finding a JV to fund the deal, which is frustrating since the opportunity is so nice and there are many plausible exits (or holds for that matter). I have seen questions out there before regarding people looking for HMLs or private lenders that fund notes, and have yet to see a positive response -- but aside from that, do you have any suggestions on getting lending for acquisition of the notes, which could be refinanced to a real-property loan within a very short period (less than one month) of time once the DIL's are recorded?

Appreciate any thoughts or advice!