Raising 1.2 million and the Seller Will Finance the Rest...strategies?

[Vera Hendriks]

Hi everyone,

I’m actively trying to acquire a well-established hostel property with a strong reputation and long operating history. The purchase price is $6M.

• Equity: $800k–$1.2M (I already have $400k contingent on tax returns from one investor)
• Seller Financing: Balance (~$4.8M–$5.2M) at 6% interest-only, 5-year balloon
• Investor Terms: Offering 8% preferred return + equity participation

• Revenue has averaged ~$750k–$800k annually over the last few years.
• Expenses run about $300k per year.
• Normalized NOI: $450k–$480k.
• At current occupancy (~40–45%), cash flow is thin. At historical occupancy (~60–65%), the deal produces healthy positive cash flow.

• Occupancy used to average 60–65%, but recently dipped to the low 40s due to management/marketing issues.
• Strong potential to restore performance through operational improvements.
• Hostel market demand remains resilient with strong traveler interest.

I’m looking to raise the remaining $400k–$800k.

What's the best way to attract equity partners for this type of deal? Should I focus on private investors, angel groups, or real estate syndication platforms? I worked at the hostel for 3 years and plan to live there and manage it.