All Forum Posts by: Percy N.

@Lamont Marable "house hacking" is typically referring to under 4 units.

Once you go above 5 units you need a commercial loan which typically needs 20-30% down.

You could look into hard money or bridge loans which may let you buy and fix a multi-unit property and then refi once fixed, so the next out of pocket is not much but that would depend on the deal.

Many sites offer free to lower rates for under 20 units.

Try FB marketplace, Craigslist, zillow, Google my Business page, etc

With any partnership (whether its business-related or not), there is a risk that it may not work out long term.

The more people involved, the greater the risk and less clear the roles/accountability.

There is no magic number, but I would really question if you need more than 3-4 people in the GP.

Too bad. How many sq ft were the units?

@Zach Frederick when we looking into this a few years ago, it was possible but not common.

Large financial institutions will provide a LOC for a (say $50mm+) fund depending on the banking relationship you have with them.

There are private investors who may do this for a higher return than the typical private loan. 

Keep looking and expand your network. A lot will depend on the amount you are looking for.

Agreed @Justin Goodin and I will add a few more flavors of diversification an investor can achieve:

• Project type (Value-add, stable cash flowing, etc)
• Sponsor diversification 

A lot of factors will come into play when determining the best options here, especially accessibility to power and internet access (if you want remote viewing or cloud storage).

For some of our apartment complexes, we have installed owner-paid internet for common areas, for others, we have used cameras that communicate via cellular signal and solar due to lack of power and internet connection. 

@Sue Zikria typically you should get the benefits of the economies of scale and higher dwelling density with an apartment complex. However, if the numbers you state above are correct, then there is something missing or the deals are not equal.

Be careful with Philly real estate, it is very neighborhood specific.

Be careful of taxes in NJ and make sure you underwrite it correctly.

@Victor U. Mbah it is unlikely that a lender would allow that. The whole idea is that they want a "guarantor" who has assets they can easily go after. So unless this KP has assets in the US, I would say it will be tough, but may not be impossible.

@Matt Maitz depends on how large the property and loan size is.

For larger syndicated deals you can raise the capital needed for the capital stack outside what the lender will fund. 

However, lender will want to underwrite anyone with 20% ultimate equity and you need to follow proper SEC laws if you are bringing in passive investors.