Needs tips on presenting to an equity partner
I'm currently in the process of purchasing a 6 plex in utah, the owner is out of country and is wanting to sell off his properties, this deal is currently on the market for 330k but I am in the process of negotiating it for 300k and the gross monthly cash is $3425, after all expenses, the property is cash flowing at $1300 a month. I am working on making a presentation to investors that simple just want a an 8 to 10% return on their investment. I would like to do a 5 year loan, interest only with a cash out at the end or extension of the loan depending on the investors preference. I would like it to be as professional as possible, I have all the expenses laid out in an excel sheet with all calculations done for the mortgage, ROI, reserve calculator and a lot more things that quite frankly I'm not sure if they will care, but it's all there to show that after expenses I will be able to provide the return I am promising. As always, thank you ahead of time.
Most Popular Reply
Mahonri,
I would be careful about how you approach investors and get some legal guidance. A formal offer to investors is an offer to sell a security and has strict guidelines on how to do it. For some tips on discussing deals w/investors, you can review some podcast interviews I've done on my website under thought leadership or on my Bigger Pockets profile page. I've also put together a simple 10 step lessons learned that might be helpful w/your capital raise. Wish you the best.