89 unit deal financing

[Sean Butterfield]

Haven't posted in a LONG time so bear with me here. My wife and I are trying to purchase our ex-landlords rental properties, which is around 50 SFH, an 18 unit apt bldg., and a 12 unit apt bldg. We need a $1.2 million down payment and frankly we're are unsure of how we're going to get it. Any suggestions on how about getting a down payment this big? We just bought our house in Feb of this year, so equity isn't there. The business is very profitable, so we won't have a problem paying the loan, we're just unsure of a way to come up with this amount of money. On the surface hard money and/or private investors don't seem like a viable option, but am I wrong for not considering private money? We basically don't want to get tied up in a financing deal where the investor(s) get too much of a say in OUR business, or can call on the loan balance prior to the end term of the loan. ANY help and/or guidance would be VERY helpful!! Thanks in advance!!

[Jeff Greenberg]

Along those lines you may want to get a master lease with an option. Make sure that you get a lawyer to draw up an agreement and lock up the deeds.

You don't want to put all the effort in and then have him change his mind and sell it out from under you or a family member just jump in and take over.