Raising private capital as a loan for multifamily
I'm in negotiations for a 12 unit in Cleveland right now, and will be raising 150k to go towards down payment and reserves. Our plan is to lower expenses for the building (gas is in landlords name now etc.) make minor improvements to units/common areas, and slowly bring rents up to market rate. Property is already stabilized, but to bring up to the valuation that we are seeking it will likely take two years before we can refinance out investor capital. I was advised by a mortgage broker that one of the ways my partner and I can structure the deal, would be to take on a private loan in the name of the LLC that we are forming. He told me that those investors can either be on the loan in the form of a promissory note, or they can be placed in second position on the property. Does this sound like the best strategy moving forward? Also if I end up securing multiple investors for the 150k that we are raising could multiple people be put into second position after closing?