7d • 💰 Raising Money
Looking 4 private lenders
Location
35-unit multifamily in St. Johns, North Portland, OR
Well-maintained, strong rental demand, value-add upside
Purchase & Financing
Purchase Price: $5.8M
Seller Carry: $3.8M @ 5% interest-only, 5–7 yr balloon
Private Lender Role (You): $2.0M @ 5% interest-only
Sponsor Role (Me): 100% owner/operator, on-site management, deal execution
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Returns (Conservative Projections)
Day One (As-Is):
NOI: $394,283/yr ($32,857/mo)
Payments: Seller $15,833/mo, Lender $8,333/mo
Cashflow after debt: ~$4,648/mo
Plus mgmt fee: ~$4,041/mo
Sponsor Take-Home: ~$8,689/mo
Year One (Stabilization):
Implement RUBS, parking increases, insurance savings
NOI climbs toward ~$420k–$430k
DSCR improves to 1.3+
Year Five (Refinance):
Stabilized NOI: ~$500,000
Value @ 6% cap: ~$8.3M
New loan (75% LTV): ~$6.2M
Pay off seller + lender ($5.8M)
Sponsor cash-out: ~$400k (tax-free)
Post-refi cashflow: ~$12,300/mo
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Roles & Responsibilities
Seller: Provides $3.8M financing, collects steady 5% payments, exits at refinance.
Lender (You): Contribute $2.0M, receive steady 5% annual return ($100k/yr) secured by real estate, capital repaid in full at refinance.
Sponsor (Me): Handle full management, leasing, maintenance, and value-add execution. Build NOI, oversee refinance, and grow equity.
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Exit Strategy
Hold 5 years → force appreciation through rent increases & fee income → refinance at $8.3M → pay back seller & lender in full → sponsor retains property long-term with strong cashflow.
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Why it Works
Seller gets their price and stable income.
Lender earns a clean, secured 5% return.
Sponsor builds sweat equity, grows NOI, and positions for long-term ownership.
Clear win–win–win alignment.
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Looking 4 private lenders
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