Need help acquiring this 15 unit Apartment.....

[Tyler H.]

I will try and keep this short and sweet. Any help, advice, or referrals would be appreciated...

What I HAVE:

• The experience. 10+ years investing in and managing SFH rentals. Also a Realtor involved in the transaction.
• A GREAT deal to acquire a distressed REO 15 unit apartment. Have contract @850K, As-is value around $1.1 - $1.3M.
• Solid business plan including my experience, strategy on how I will turn the apartment around, and exit strategy. (available to those interested)
• Great personal credit, around $280-300K in EQUITY. (rental houses)

What I DON'T HAVE:

• The liquid CASH
• Access to the CASH via private money

What I NEED:

• Way(s) to acquire this apartment
• Method to generate necessary funds
• An investor / Partner

What I Have FOUND:

If possible I would like to make this acquisition without giving up any equity, however at this point I am open to any beneficial solutions. I have reached out to a few fellow BP'ers and this is what I have found thus far.

1. 1. Blanket (portfolio) Loan. Combine 2 SFH with equity with the acquisition of the Apt. I have worked up this scenario in my biz plan, and I have a few pros/challenges I see; A) I would be sitting @ around 80% LTV portfolio WIDE. LTV would depend on valuation method, so most lenders will go off purchase, if I found one to go off value that would be golden. B) Im told that this is not a popular loan product and it will be difficult to find a bank to do this.... (by a residential broker) Could be unfamiliar?

1. 2. Bridge loan until I get the Apt stabilized and Refi out. Best I have found is that if the deal is 20% under value @ purchase, I can bring only 10% in. I would then need to bring in or acquire around $100K private or hard money. Higher rates, but the prop will be stabilized and new financing taken out 1-2 years later.

1. 3. I spoke to a lender (broker) who claimed he could get me true commercial rates (3-4%) stated everything, no tax returns, Min DSCR 1.15, just NEED 25% down. Sounds awesome if he can pull it off, BUT I dont have the $100K, let alone $270K!!

My dream scenario would be a private/hard money lender that would collateralize by using either a on the APT, or 2nds on my SFH . Most hard money will go up to X LTV, which kind of leaves a lot of the equity I need un-tappable. So second best would be a private investor on a flat rate. (I dont know any). 3rd would probably be a blanket loan @ a good rate if one exists or if I could make it happen. And then 4th would be taking on an equity partner.

Any private or hard money lenders have a solution for me?

Any smart people want to suggest their creative ideas?

Any investors out there want to go in with me?

BTW, since you read this far, both SFH that I would pledge as collateral have great 30 year fixed rates, so I don't want to get rid of those mortgages unless i absolutely have to.