I got a 9unit apartment complex deal and it will be owner financed with less than 10% down. Complex near San Antonio TX. I am looking to close before the end of the month. The roof and some electrical work will have to be redone within the 1st year which adds up to about $45,000.
I am considering the option of borrowing from a private lender the money for the repairs hoping to find an interest only loan at about 8%-10% for 3-4 years and offering 2nd position (seller has 1st). If i can lock in the lender before i close, then i will try borrow the downpayment + closing costs + repairs which adds up to about $66,000.
I have never borrowed from a private lender like this, so my question to the network is, what is an attractive way to present this to private lenders? Maybe other terms that might be better for both the lender and me? Any suggestions how/where to find some private lenders in San Antonio TX? Any other ideas where to find this kind of money with those kind of terms?
In talking to some conventional lenders, they are not interested in something like this as they wont be having 1st position.
Thanks for your time!