Hello BP fam!
Im fairly new to the investing game, and wanted to get your thoughts on something. I’m not sure if this is ignorance talking, or if this really is a good idea.
I make 6 figures and have good credit as the starting point. Someone that I know is selling 10 properties totaling around $3M. They all cash flow well (per my standards) and are in areas which are going to appreciate. The downside here: I don’t have $600K to put down as a down payment for all of the properties and I don’t want to lose this deal.
Now, my conundrum, I do have family members who are, let’s just say, well off and have agreed to loan me the money for the down payments. For paying them back, this is my plan;
I’m buying the properties for slightly under market value, so between that built in equity, tenants paying down the mortgage, and a very conservative appreciation number, I should be able to cash out refi and pay back my family members, and give them some money as “interest” within a year. I know I’m going to take a hit to cash flow with the refi, but I’m okay with that.
The other conundrum I have is, if I have all of this on paper/in writing to show them the numbers all add up, how willing would a bank be to loan me the remaining money? I know you guys can’t “speak for the bank”, but just using your experience, what do you think?
Again, from my ignorance, I don’t see what would hold me up here. But I just wanted to bounce this off of you guys to help me see what I maybe missing.
Thank you!
-Dom
