Private lending

[Jeremy Phillips]

I have an apartment building that I want to purchase its annually cash flow is $66,300.  If we raise the rents to the average rents in the area it could possibly net annually $85,000.  It needs somewhere in the neighborhood of $ 95K - $120K in renovations.  How should I get the funds for renovations if I want to do owner financing?  Do you think I should approach a private lender because there will be $100K in equity once the project is finished?  It also have a duplex on the property that could be renovated and a building for a laundry mat that is not in use.   Just trying to figure out the best way to approach this deal because of the upside. 

[Shawn Torsitano]

@Jeremy Phillips

First step is the owner financing. If you can't find a way to actually get the property, nothing afterward really matters. Have you spoken to the owners and is that a possibility, or is it something that you are just hoping for?

If you are able to get the property, private lending would be a good option for the renovations, depending on the plan to get the cash back. That sounds like enough cashflow to easily pay back a private loan of that amount. 

Something about this seems a little "too good to be true" though. Have you accurately allocated for all the costs? Is that $66,300 profit before debt service?