8 Unit Apt - 1st Commercial Property - How to structure the money
I'm fairly new to investing: I have a duplex and currently working on a small sub-development in my area. My realtor has told me about an 8 unit apartment building that will be coming up for sale in the early summer and I'm trying to figure out how to make it work. She said the listing realtor told her some of the units already have separate deeds and most of the apartments are fixer uppers. I have resources and access for the rehab part but will need to get the initial downpayment and some rehab money from multiple sources i.e. people I know already.
- Wondering how I set up the money: do I give different percentages for different amounts? Who gets paid back first? How long of a payback schedule do I do? Is it tiered? Do I do it in an LLC?
- Thinking I can rehab one or two of the apartments, sell those to pay the investors back then put the remaining money back into the complex. Looking for people to poke holes in this plan or heads up for any pitfalls that I wouldn't know about being a noob.
- Any good books on commercial structuring money for smaller commercial ventures?