All Forum Posts by: Account Closed

OK I have an investor wanting to JV on a multifamily portfolio (6 houses), he will provide half of the down payment and find a line of credit for me on the other half. In return he wants a 50/50 split and wants me to convince the seller to "carry-back" 40% and not the current 70%... (the seller is financing and currently if a 150000 down payment is made, the seller is financing the difference of the asking price of 535k which means he carries back 385k. Is this investor asking if the seller will lower the asking price and only finance 214000? (40%) Or do I have this wrong?

I'm doing some research now but perhaps someone could shed light on the importance of carry-back percentages?

@Brandon Reed I'm not a member yet, but I've started to attend monthly CFRI meetings. The next one is on the 5th, I'll see how much networking I can get done then. Thanks!

@Brandon Reed I'm not a member yet, but I've started to attend monthly CFRI meetings. The next one is on the 5th, I'll see how much networking I can get done then. Thanks!

@Tom S. Unfortunately, the broker knows I'm new to this and is not entertaining my questions very expeditiously.

@Tom S. Hi, and thank you! Yes this a great deal for a first time investor interested in multifamily. The asking price of 535k means each of the 6 houses in the portfolio are 89k. That's almost half the comps for a 3/1.5 SFH. I am definitely doing my best to secure the down payment!

I'll reach out about 10% down and 15% later, that's an option I've not read about yet. Thank you!

@Brandon Reed Hi Brandon, thank you so much for the reply. As for JV, are your familiar with typical terms and expectations of a capital contributor? For example, would we both co-purchase the property even if my goal is to buy and hold longterm and want to buy their interest out of the deal? And pardon my lack of terminology right now, I'm learning. A more specific example is if a private investor had 135K in the deal for me to obtain the property, and I made a monthly payment to that investor for 12 months with the intent to cash out refi and pay the remainder of the 135k plus reasonable ROI... does this seem typical or is it all based on investor objective?

Hi, looking for lending advice.. 

I've secured funding for single family investments, but have yet to pull the trigger. Today, I was presented with a 6 unit multifamily portfolio with 10.3% CR, 22% COC and NOI of 51k. 100% occupancy, with waiting lists and all rents are below market at this time..so room to improve.

I presented offers to HML but naturally none will risk not being in 1st position.

The seller is offering financing at 25% down and 30 years amortized at 5% int and balloon at 5 years. 

The lenders will pay for the property but not without at least 20%. That's close to 130k. And not to mention an interest rate of 11-12% compared to the sellers 5. This is where I need some advice.. 

I dont have friends/family to contribute nor long relationships with private money. I have started networking, I research and ask questions, but it seems I've yet to find a way to raise capital. There are just so many people, like me, saturating the market and turning private money off. How does one obtain their first deal without spending years putting cash away?

I know this deal may not be the one, as it will go quickly, but any advice on securing capital or JV?