Updated about 4 years ago on . Most recent reply
How would you structure this deal?
Hello BP community. I need a little help structuring a deal with an investor. I found a deal. It's a multifamily property that has potential to increase rent of $150/unit with minimal improvement. 13 Units. I am buying it for $760k, owner financing. Seller wants $250k as a down payment. $510k financed over 20 years at 5% interest rate. The property in 2-3 years should be stabilized and the property should be worth around $980k with 14.5% COC ROR. So, I will increase the value of the property by $220k. Since the down payment is $250k, would it be reasonable to both of us go 50/50 on this deal since my partner who will put the 100% of the down payment will be basically a passive investor. I am going to be overseeing the property. I am hiring a property manager but still I am the one who will be in charge of the project. What are your thoughts on this deal? Would you structure it differently? Thank you!!!
Most Popular Reply
Your partner should go to a bank and get a loan for only 25% down. Buy the property solo and pay you to be the PM.