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Updated over 15 years ago,
Potential Deal, Input Please
Deal 1:
I've got a motivated seller of a 4-plex. With a cash offer of $150,000, the cap rate is going to be 15.2%.
Now, I've got an investor lined up who will fund 70% the deal (I'm putting up 30%) at 7.5% (20 years).
My plan is to then sell the property on a wrap for $225,000 (10.1% cap rate), require 20% down ($45,000), and to carry the balance at 9.0% (20 years).
My question is, does anyone see a better way of structuring this deal? Devil's advocates are welcome.