Finding ways to Finance a 10-plex

[Junaid Anwar]

Hi Everyone,

I am currently trying to raise capital for a down payment on a 10-plex building in Louisiana. This endeavor has not been fruitful so far and because of that, I am looking for alternative routes. I am currently a Senior Level Property Manager for my firm and have years of experience in the industry and from my experience, I know that this deal is too good to pass up. The current owner/manager is severely underpricing these units (all efficiency) by almost 25%. I want to use a variant of the BRRRR strategy here to force appreciation and refinance. Not only will I be able to pull tens of thousands of dollars our from the refinancing stage but the property will cash flow almost 2k after all expenses. Currently, I do not have enough capital for the 20% downpayment and am trying to figure out a way to finance the property. The owner does not want to do owner financing.

Does anyone know of a lender/loan that would possibly accept a lower downpayment for this property? Any insight or tips would be very much appreciated.

Thank You,

Junaid Anwar

[Todd Dexheimer]

Ask the seller to do a seller carry back of 10% or better yet ask him/her to finance the purchase for you with 5-10% down for 2-3 years. For private money talk with everyone you know. I'd be surprised if no one in your company, church, friends, family, acquaintance network wouldn't have interest. Even if you pool a ground together to raise the funds and partner with you. Usually the sponsor(you) would get a 20-30% ownership and all the money people would split the remaining 70-80% based on their monetary equity.