How do you find a money partner to purchase an apartment building in NYC?

Question

I am looking to invest in a property. I have access to quite a few properties that would be good investments, but part of my negotiating strength would be in having proof of funds in hand. Most people who have cash are looking for a signed contract. I really would like to develop a relationship with a few people who are looking to lose money on paper.

Answer 1

Since your looking for a financial partner, I a assuming that you have no money that you can contribute to the financing of the investments. Most hard money lenders will not fund on property where the LTV or CLTV will be more than 50-60% of the value. If it is a CLTV, then the second would have to be subordinated because I do not know any hard money lenders that will sit in second position on a property.



Your best bet, is to either acquire a personal loan from a lending institution, or see about private funding. If you have a good business packet that you can present to equity fund groups or even VC groups, you might be ale to perk their interest. Those types of financing usually comes in the millions. I just closed on a VC deal in TX worth 2.5M. The original deal asked for 1.75M but the VC group was not interested in that "low" investment value. So you need to make sure that the people that your targeting is with in your play group for now.



Hope this helps, if you have any other questions, feel free to contact me directly. Good luck...

Answer 2

I dont know if you can find a person to give you money to lose on paper but maybe you could take out a hard money loan. They lend you cash to invest in real estate. The interest is crazy high though. Its almost like legal loan sharking lol! Good luck!!