I am caught in a predicament and am looking for ways to solve it. I have a deal that I have been working on since May and I am getting a little closer to making it happen. We have had to get creative with the deal because I did not have the money to put down a down payment on the place. Without going too deep in to the details of the deal, I need to get about $50,000 of my own money to help make the deal happen. Like I said, I don't have it to put up so my question is "what would be the best way to try to raise the $50,000?" I was thinking the best way was if I could get a personal loan from someone and pay them back plus the interest.
Any ideas or solutions that anyone could think of would be appreciated.
If the deal is good even with borrowing the funds, then go for it.
Refinance your house. Home equity line on your house. Sell something expensive (even your house if the deal is good enough) Put it on the Credit Card (works wonders, IF you're sure of your numbers:) Call everyone in your phone contacts and tell them you have a $50,000 opportunity you'd like to tell them about. Ask everyone in your contacts who they would be talking to if they had a $50,000 opportunity. Put a post on facebook or your social sphere of choice that you have a $50,000 opportunity for the right person. Call several local Realtors, specifically ones that do investments and commercial and ask hem if they're interested in a $50,000 opportunity and ask them who might be. Borrow against other investments like stock or borrow from your 401k Borrow from another investors 401k, your Mom's, your neighbors. Their house equity is a great too. Ask for an advance from your boss, or borrow from their 401k, house, boat, etc. Talk to your kids teacher about it. Ask a hard money lender. Ask the seller to carry that much (or that much more.) Call Grandma. That uncle who has money, or that Aunt that always knew you could do it. Personal loan from the bank, or the junk credit card offers. Put your vehicle up for collateral.
Try all those things... after you're sure it's a good deal.
@Dane Delatte if done correctly, you can put together a small syndication with money from friends and family. Analyze the deal as a syndication and see if the numbers still work out. Typical syndications give 30% equity to the sponsor (you) and 70% to the investors. You will need to understand the securities laws regulating syndication and an SEC attorney will need to prepare the proper documents.
@Joel S. Thanks for the vote. If you know what you need to know that is half the battle. As a beginner, you can find a good attorney who can answer any questions and walk you through the syndication process. It’s not as scary as it sounds.
@Dane Delatte A partner and I started investing in Ascension and EBR in 2016. We are currently looking for MFRs in Ascension. There aren't many. We have also financed others' deals in the past. We can talk offline if you want to share more details.
@John P. I am still trying to work out the deal. The owners have been on vacation since I last posted and I haven't really talked to them in about 10 days.
Thanks for asking. Nothing has really changed yet. I have sent some numbers to a guy in Seattle and I am waiting to hear back from him as far as the $50,000.
Sorry it took me a while to get back to you. I'm still in the waiting process. I sent information to the loan officer at a bank on Friday. She said it looks good, but it is going to take a little time to finalize but I am still working on the $50,000. I have a guy in Seattle that is meeting with his Accountant on the 23rd of this month so he can talk numbers with him. I will keep you posted. Thank you.