Updated about 3 years ago on . Most recent reply
Financing an Off-Market Deal
My mentor is liquidating his portfolio because he is moving out of state and gave me the opportunity to purchase any building(s) from a list of properties that he is trying to sell. After reviewing the properties on his list, i identified four multi family buildings that I want to buy. The buildings have a total of 12 units and all the units are currently rented at or around the local market value. It is composed of one duplex, 2 triplexes, and one quadplex. the total sale price for all four is $1.2 million dollars.
This is the first time that I am seeking financing of this magnitude and first time that I am in need of a way to creative finance a deal. I'm not sure of the best way to finance the deal since I currently don't have the money for the down payment of that sales price. I have been debating pulling equity from other properties that I currently own for the down payment. Or looking into a hard money loan for the down payment and a DSCR loan for the properties themselves.
The seller is not interested in seller financing since he plans to roll the proceeds of the sale into another purchase in his new area.
Not sure of the best strategy to pursue.