Solution: Ask the sponsor if a professional property management company has verified their operating expenses and agrees with their pro forma numbers.

They can give you big picture numbers and connections if not be interested in a JV themselves which would incline them to spend some time helping determine viability and maybe even a pro-forma. - reach out to syndicators- good CPA's are well connected and know the numbers.

Private money lenders are typically not licensed, private individuals you form a relationship with and one in which they are looking for alternative investments other than the stock market, bank CD, etc.

>Dan has had to rely on the market outgrowing his negative cashflow.So far I have never purchased a negative cash flow property, but I would not be adverse to doing so if my pro forma projected a return that meets our criteria.   

The first tip-off is that you asked for MA.

Excel is your friend to pro forma these options.There's one opportunity inside your situation that may tip the scales one way or t-other. 

Just realize that this unit is at higher risk of not meeting pro forma projections.  

I'm not trying to crush your dream here but it is very clear you did not do a proper pro-forma before you bought that lot.

And although Im super hesitant to use this figure in my purchase decision, my realtor comp-ed them out at 750k ARV.Last Years Actual Rent Paid: 62,777 Last Years Gross Rent Billed: 109680 Pro Forma Rent: 110,000 - 140,000 based on minor improvements/cleanup and then rent increases/tenant removalPITI: 5500/month. (66000) P 1600 + I 1300 + T 2000 + I 400Expected Vacancy and unpaid: 15% (16500)Maintenance + Capital: 10% (11000)Net currently: -4000 Net Projected: 31,500Projected ConC: ~100% with 25k down and 6500 closing costs.Thank you for taking the time to look at these numbers.

Write up a pro forma that beautifully shows the details of your deal and your projections.