Trouble Raising capital for BRRRR in West Hollywood

[Amneet Sethi]

Hi BP fam

I'm a long term buy and hold investor. I have gone down the road of traditional 30% down cash flow properties (turnkey and fixers). I have built a decent portfolio in the Southern California region. I have decided to go solely into BRRRR. I found a SFR home in West Hollywood that is sandwiched between 2 multis and is zoned for 5 units and 9 units with some affordable housing.

I'm buying it with traditional financing 70% LTV for $1.5 million. The comps are for $1.6 million and it will cash flow (albeit very small) while we are planning and permitting. Like anything, I want to go in with partners. I have already raised $150k on top of the $100k I have already committed to invest. I'm having trouble getting partners to invest for the balance of the down payment. Everyone is interested but no one wants to bite the bullet.

I have sent all prospective investors the subject property and the numbers (through BP BRRRR calc) that we project it will cost plus the ARV and Cash flow numbers. The numbers are attractive but I'm not getting any traction.

What am I doing wrong?