Need help find funding or a partner for my two deals looking to close ASAP

I have two deals that I’m looking to finance. The first is 4 4 family buildings that need a little work but have over all been well maintained. All the units are currently rented with a waiting list. The cash flow for this property is $10,400 per month or $650 per unit with renters paying all of their own utilities. I would like to aquire the property and make some up dates. Cost of ther property is $950,000 plus $60,000 for rpairs and updates. The second property is a single family luxury rental on the lake. This is a very sought after rental property that is leased until the end of 2014 for $3500 per month. The property is in need of some TLC and upgrades to be comparable withother homes in the neighborhood. This house is valued at $700,000 now and would be valued at $800,000 after repairs and updates. I would like to find $550,000 for the property and $60,000 for repairs and upgrades. Please let me know what you think or if you know anyone that would finance these deals thanks.


You don't say where your located or what your real estate experience or professional background is but it takes time and effort to create and prove that you know what your doing well enough to manage other peoples money.

With that said your obviously looking for capital you intend to leverage so an investor at best will be in 2nd position behind your first TD lenders. Your figures indicate a request for 33.3 percent of what you show as asking price and value ($950K + $700K) a total of $1,650,000 dollars.

This indicates to me you intend to put 30% down and cover closing cost’s and repairs / rehab amounts to 3.6 percent of indicated asking price making the whole request at asking price 36.9 percent. What you don’t say is what is FMV in relation to purchase price? Have you made a vacancy factor projection and adjusted gross revenue? Etc?

I always ask investors I mentor “What do you bring to the table to justify an investor trusting you with xxxxx dollars”, in this case $610k.

Using the 50 / 50 rule for apartments the first property 16 units will not support anywhere near a $950k purchase price, in fact it will barely provide debt service on $665k, let alone provide any marketable cash on cash return for down payment or cover cash costs of “A Little Work”. This tells me this property is overvalued and over priced!

Your second property being month to month rentals requires additional cost’s for cleaning, linens, replacements, wear and tear, etc. It is in fact effectively a commercial business much like a motel or bed and breakfast, using the 50 / 50 rule again your $3500 per month income divided for expenses and debt service means your $42k projection divided only provides $21k for debt service which barely supports about $250k in mortgage.

These kinds of calculation mistakes make investors absolutely positive they will not do business with you as there is absolutely no way you could pay back their money, and I took your figures litterally and still had not adjusted for vacancy factors and adjusted gross income!