6-family 1st Deal
Hi-
I'm new to this board, great info.
I'm looking at a 6family 369k
I have a few questions:
I would like to put it under contract, But I want a way out if necessary. How could I present the offer with the exit ? I'd like 15-30days for due diligance
If offer accepted ,how much $is generally put down? is it refundable?
The realtor says LTV is 75% for 6+families she sounded pretty firm. I'd like 90%, Me and my partner have enough for25% down but would like 10% for obvious reasons. Again,this is our first so lenders may not be flexible.
Any advice would be greatly appreciated-
rgds-
Chris
Hi, Typically you have 14-17 days for inspections etc...an ything that you dont like you ask for seller to fix and if that doesnt work or you just want out you can usually use this as an out..Once the time has passed you are comitted....I ALWAYS use the finance as my out because I am very close with my lender and know what not to do to not be approved....In my market I am making offers based on a picture and adding viewing as an out after I am in contract...If I dont do it this awy somene else is going to and the properties are gone....not sure this helps but just some thoughts to get you going
[ Edited by BMan on Date 03/27/2004 ]
With anything over 4 units, lenders look at the numbers on the property. If the income is good, you might be able to get a higher LTV. I hate to say it since I am a Realtor, but most of them don't know much about creative financing.
Do you know if the seller is open to owner financing? If you offer a better interest rate than what their getting from the bank, they might want to consider it.
Always put plenty of contigencies in your contract. Make sure you get all the tenants to fill out estopple agreements, check out the expenses, plus loan and inspection contigencies.
Best of luck with your purchase!
You can also put in a contigincy thats says: contigent upon final inspection and approval by partener 3-days before closing. your partener could be your little brother or moma
Lenders WILL go to 80% (Possibly higher but I dont know any) on multi family.
Look at the "Lenders" tab on this site.
They value Based on the Income of the property.
Ask the owner to take back a second mortgage for 10-15% and there is your 90% loan.
Good Luck,
N.
Thanks for the advice.
-Chris