Help me buy 16 Units on a Lake!

[Joel Florek]

I have been working to evaluate a deal for 16 units on a lake in the town I currently invest in. All financials have been reviewed and I have toured the property for a first inspection. I am confident in a purchase price between $570k and $610k for the building (owners are asking $700k but have been for 2 years). I have a bank that is willing to finance the deal between 4% and 5% for 20 to 25 years with a 5 to 7 year balloon. The bank is willing to lend with $120k in assets tied up. That being said in conversations the bank would be willing to lend on a 15% down payment. I have other assets that would cover the $30k to $40k in additional guarantees so I am looking for an investor to bring $90k to the table.

I would prefer to keep equity control and find an investor willing to lend at 7% to 8% depending on the amortization period and balloon. If someone could help give advice on how to find people like this or know of someone who may be interested that would be a huge help!

I am also open to other suggestions on closing the deal so please provide any advice you have.

Currently I have an investor who is very interested in the property and would like to go 50/50 with me if he decides to continue. He would loan me 50% of the down payment and we would split income at the end of the day, although I would get the property management fee as well along with some of the maintenance labor.

If anyone would like to know more or can help please advise or reach out to me. Numbers on the property are below. These are based on actuals over the past 3 years and projected moving forward. The Refi 1 column is used for expected 5 years down the road when I refinance the property. I have an excel sheet where I can play with different types of financing both initially and use a more conservative estimate during the refinance. This allows me to make sure I am not setting myself up for a bad day 5 years from now if things slow down, interest rates go up and money at the bank is tight.