Private Money Deal Structure
Hey everyone! I'm trying to buy two multi-family complexes and have a few individuals who have committed to giving me private money to fund my down payments. The two opportunities I'm working on right now are a value add (110 units, $4.3M purchase price, $330K in rehab costs, and will need roughly $1.2M at closing). The second is a buy and hold opportunity on a 15 unit complex. (roughly 900k purchase price, and $190k needed at closing).
Does anyone have advice on how to structure the private money as a portion of the deal? Does it make sense to do it as a separate debt sleeve or will i need to give up equity and a % of the cash flow each month? I'm sure there are thousands of ways to do this, but I would love to hear what others have actually done.
Thanks for your help!