Private Money Needed; Dayton, OH Fourplex
I am looking for private money to finance a 4-plex in Dayton, OH. I would use 20% from my self-directed IRA and I need an investor to finance 80% at 5% for a minimum of 5 years (30 year loan amortization). This is a solid investment with an 11% cap rate, 2.18 DSCR located close to downtown Dayton. The total loan amount needed would be $132K. Project is undergoing renovations prior to purchase and once completed will bring in $2400/mo.
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Can you provide a bit more detail on the numbers? I'm not coming up with the same cap rate or DSCR based upon a $132K sale price with only $2400 in rent.
On a separate note - and I suspect you may already know this since you're asking for private funding, but I'll throw it out there anyway - a loan to an IRA has to be nonrecourse financing, as your IRA cannot guarantee a note, and you cannot guarantee personally for your IRA. Just something to keep in mind for anyone considering loaning to an IRA.
The few institutional lenders willing to make these loans are more like 50-60% LTV, but could be worth pursuing if you haven't already tried.