Hello all. Me and my wife bought a 10 plex in big sandy, Tx last year. We have several issues needing taking care of ASAP. We are looking for funding. We are open to options. We owe 527,000 on it now, and at full capacity it should be valued between 825,000 -875,000 Look forward to options or suggestions
There are many ways to do it...not all of which will make sense. Texas is a bit different with some of their laws. What are the rate and terms on the first mortgage? How is your credit? Can you do a program where your complete cash-flow is taken into consideration or do you need a program where the only focus on the property's cash flow? In order to advise someone, you really have to dig down deep and completely understand the situation. Your post is a good start, but I think there are many more layers of the onion to peel back in order to really help you. Sorry for the "non-answer", but if I were advising you, I would ask a lot of questions to understand where you guys are at and where you want to before advising you on how to get there.
I agree with @Doug Smith on this one. It's helpful to have a better understanding of your overall financial picture. A few potential solutions:
1) You may be able to take on additional debt (if you can find reasonable terms)
2) Private funding - raise funds from private investors. Can be costly and typically requires you to give up some equity (unless they'll provide you with a private loan).
3) Revenue based financing - this is a viable option if your current property is cash flowing OR you own other long term rental properties that are cash flowing. In this case, you trade a portion of your future rental income in exchange for up front cash. It doesn't add debt and you don't give up any equity.
I'm happy to chat if you're interested in the revenue based financing option. Feel free to shoot me a DM.