I am not new to investing, but I am very new to deals like this, so let that serve as my disclaimer!(but that's what BP is for, right?) My wife and I have a 3-5 year plan that includes 50-100 SFR. I have found a nice portfolio that fits our strategy, so what I am seeking is advice on funding it. Anything you guys can contribute would be greatly appreciated. Here are some general details:
20-30 SFR, all under 4 years old. 100% occupied class A rentals that are cash flowing nicely. Asking price +/- $3,300,000, so 20% down is roughly $660,000. I have $50,000-75,000 cash to put down, maybe more, and I am looking for my options for the remainder of the down payment. I can get the loan for the remaining balance at around 5.25% for 30 years. This being the largest transaction I will have made to date, I am not sure what my options are. Ideally, I would like to have an investor come in with the $600,000, get the transaction complete, then sell off 3-5 of the properties to pay the investor their investment plus our pre-established return percentage/equity. I would assume this process would take 6-18 months, given existing lease agreements, time to sell, etc.
So in a nutshell, we would be looking for $600,000 for 6-18, 24 month tops. My wife and I are both high W2 earners with perfect credit. We do not need any of the cash flow, so our intent would be to get the investor paid of ASAP, as in all additional monies would go to our investor first.
Please give me your thoughts on this deal, getting it structured, what a potential investor would like for a return, if equity in a few of the properties instead of percentage would be more attractive, and anything else you can contribute. If you are interested in assisting with this deal, please pm me. Thank you guys!
