Owner Financed- Hard Money Lender for Down payment?
Hello All,
First time posting to the board. My business partner and I are looking to do our first investment deal. I'm a former commercial lender and he is a construction superintendent. We have our eyes set on a vacant office building that has had some flood damage. Our goal is to purchase, renovate, and then lease out. From there we would decide if we'd like to flip it or keep on collecting rent and cash flow it.
The owner is willing to do owner financing (20% down payment, 5% rate, 20 year term). He is also waiving payments for the first 12 months which would help us during the renovation stage. My question is this- Can we use a hard money lender for the 20% down payment and construction/ renovation costs? Or would we be better off going the private investor route. I could probably find 15-20 people who would be willing to invest $20K each. But that would take some time.
Are we crazy? It's a 20k sqft office space that we could likely rent out at $2/ft.