What Could I have Done Different

[Kenton Moyer]

I just had a capital partner walk away the day I was going to go under contract.  The partner would have made out well and I believe it would have been a fair deal.

The numbers (deal): Capital partner was going to put $220k in the deal receiving 8% interest only for 24 months and then 9% if I'm unable to get the favorable financing terms I'm looking for.  After 36 months, he would be able to force the sale of the asset, buy me out or just continue on with the 9% interest only payments.  Then when I do buy him out it would be at 111% of capital invested.  A solid deal I thought.

The asset? In Fayetteville, NC where the rental market is strong and it was only a 10 minute drive to downtown and minutes from a well- known University.  8-plex that needs minor improvements to get market rents: parking lot sealing, new front sign and painting of exterior.

I thought this was a solid deal with an asset that would be a win / win for both of us.

Thoughts? Questions?

[Joe Villeneuve]

Quote from @Kenton Moyer:

@Joe Villeneuve I'm not 100% sure.  It was all good for 3 months of keeping him in the loop, structuring the deal, creating a business plan, working with a good attorney writing up terms and how the partnership will work.

I've done 2 other deals with this investor, although they were smaller, they had smaller returns as well.  

Now I'm stuck trying to find another investor or walking away!

You mean you never found out why?  Your answer might still be with this money partner, if you find out why the terms you negotiated all of a sudden don't work.  If you've worked successfully with him more than once already, you may be walking away from your answer, just because you didn't follow up.