Financing Apartment Building
I have a personal friend that has just offered me his apartment building for $630,000. It has 10-2bed/1bath units that rent for $800 per month. Gross monthly is $8000. I am trying to find a lender that will help with financing of this project. I can easily come up with 5% down. 10% would be a little tougher but I might be able to do. I am a new realtor so full docs might be hard to come by, unless I can use bank statements. Is there any financing out there for 90-95% LTV at stated rates? The apartment is fully rented and apprx value is $850,000. I can have my friend supply his rental income docs if it helps.
Second question... I just formed a LLC and would like to know how do I go about transferring this apartment from my name to my LLC. What are the proper procedures?
IMUA
I stated commerical lender is hard to come by. Can you prove cash flow or reseve, in the world of commerical they dont really care what your making they will really considert the cash flow of the property and its condition.
Can the monthly rents handle the monthly mortgage after expense. I have a great commerical lender with the lowest rates, they even have a pre-pay buy down.
[ Edited by woodsong on Date 07/10/2005 ]