lummov 0 Report post Posted May 25, 2008 Good afternoon all. I have a friend that has a 3 unit building that is worth $280,000 ARV. He is willing to sell it to me for $60,000, it needs $80,000 worth of work. The building is currently free and clear. My problem is that my credit has been hit hard because of the RE market. I am self employed and just now getting back on my feet. I have an end lender that will refinance me, but I don't know how to finance the initial purchase and rehab. Any suggestions (besides wholesaling... that one I know). Thanks all!! Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted May 25, 2008 Here is what I would do. Borrow 180K from a private lender or hard money lender. Do the rehab and get it filled asap. Or do something like this: Seller holds 60K for 24 months. You borrow 100K from private lender for 24 months. If seller wants cash down. Borrow it from the private lender. Make sure you borrow enough for repairs, and carrying cost. If he won't do seller financing, then think about structuring a partner ship just for the financing. All you need is about 200K. 10 friends with 20K each will do it. 10 units of an LLC at 20K each. Let the interest accrue. Get it done. Pay the LLC back and look at what you have? another 200K to go do deals with. Share this post Link to post Share on other sites
