Borrow down payment on multifamily unit
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?