All Forum Posts by: Alexander George

I'm not a lawyer or expert on deal structuring but what we see the most common is a single GP (general partner) and a number of LP's (limited partners). The general partner runs the show while still putting down an initial amount of equity. The LP's are basically passive investors. I would think very carefully about ceding control over the investment given you are all inexperienced. Ask yourself, if it was Christmas Eve and there was a major problem at the property, who would rush to deal with it and who would want to push it off until tomorrow? The person who you know will get stuff done needs to be the GP. The people who would be drunk off egg nog and not answering their phone should be LP's. If it was my deal, I would: 

A: Ask to be GP or no deal

Or 

B: Become a LP's in someone else's deal (you'll still get a good return) and then you can learn the ropes of syndication and real estate

Just my 2-cents

The occupancy is below stabilization for most lenders (85%-90%+) and they are likely shy because your track record is nil (you said you were new to commercial/multifamily). On the bright side the 6% rate is actually pretty good. You must be in a strong market to get a valuation $5.3MM so I say it's worth shopping out to more banks. What LTV and rate makes this deal work for you? Also, would you be opposed to a bridge product until it's stabilized?

@Steve Maygar what type of property are you financing?

 Sounds good. Let me know if you have any luck. My company has a ton of banks on file so if you need help generating a list of local lenders to contact just message me

You are right. 80% is the best you will probably get. 85-90% LTV is only for special situations. If I were you, I would look to raise equity. Or buy cheaper rentals...

Why not just get a construction loan? Why are you fixed on private money?