I need help finding an equity partner for a multi-fam deal. This is my first deal. I don’t have any family to turn to for money. What is a reasonable ROI for a partner?
The property is cash flowing pretty good. Suggestions…please.
Everyone here seems to know so much I could really benefit from your insight. I’m open to ideas or partners or mentors.
What makes you think you need an “Equity Partner”…I am just curious…Do you not have any money to put into the deal of your own?.. say 10%
When you say the property cash flows…does that mean the new loan made to you will “Debt Service”…
Do you know the expenses for the Property?
Do you havea Rent Roll?
We are Commercial Direct Lenders that have many programs to consider before you ever would want to take on an “Equity Partner”
and give away a good portion of your profits.
investments clubs are a good way to discuss potential deals and to find people who might want to jump in.
check the clubs page on this site to see if they list one in your local area.
Ways to find equity partners
-strangers who share common interests
-investment and business clubs
You can use the seller as your partner essentially. Ask them to participate in the financing of the property. Ask them to hold 10-20% back and pay them interest only for 1-5 yrs then pay them off however you want. Offer them prime rate return on their money, I wouldn’t nickel and dime with the rate you are giving them because they are helping you by holding some paper and their isn’t much difference to you between 7 and 8%.
If you’re talking about new construction that’s a different story. You need someone with cash or assets that they can pledge and it’s hard to find that even if it is your family or friends, but those people are out there. Find out who the big dog real estate people are in your area and go where they do. Eventually you’ll get a moment with them and you can make your elevator pitch. It’s been my experience that if you have a good deal you can raise the equity. If you’re having trouble raising equity revisit the deal you’ve made, that’s probably where the problem is. Good luck.