Help Financing Large Deals!
I am trying to find a way to aquire funding for large apartment complexes where all the numbers are excellent. How can I get a lender to look at the deal instead of me and my company. Management is in place and the properties have on avg aroung 9% return. Any info would be appreciated.
thank you
Jeff
Wow DG_Estates! It looks like EVERYBODY can help you with this.
(lol-lol)
Almost all Brokers will say ...I can do it, I can do it ...but until the rent rolls and operating statements come in to verify, and the financial statements of the borrower, management experience of the borrower, occupancy of the property ect. ect. with out this information No one can say they can do it.
You will have a hard time finding financing with out some of your own money into the deal and not just seller carry back. Lenders do not like to be the only one with any risk.
You could possibly use a Private Placement to raise money for this down payment and not have to make any additional 2nd payment, the PPM would give your company the assets for the down payment and partners at a reasonable return for their investment backed by real estate in a first position with you.
Good Luck,
Robert
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Had to delete a stack of messages-
Lenders please note- you are not allowed to offer a loan on this forum
What is PPM?
How does one go about this?
Thanks for your input.
right now 10-15% is the magic number for the down payment. We can help you with this and any other deals. Structure is key. Value and cash flow are also factors.
[ Edited by ypochris on Date 12/07/2006 ]
thank you for your responses, login wouldnt work for awhile and comes and goes for me. Still tryng to fins the right property, number wise, and then will look for financing. How difficult is it to get investors to invest in a PPM if I am going to be just starting out? Also, I have higher standards for deciding if profitable or not, for every 10M, I expect to see around 1.2M+ in NOI. Thank you again and look forward to any more responses.
Jeff
I dont understand? Most apartment complexes financing is non-recourse. Why are the lenders looking at you? If you are the president of the entity and your background in not clean credit wise, then step down and get a strawman. If your entity has not filed it income taxes, get a new entity. However you have to have some down payment funds.
2BFree.
First, welcome to the forum and thanks for posting your question.
If a property can produce sufficient income to service the debt, there is no need for you to have good credit. A Hard Money lender will want to see your resume to know what experience you have filling a unit, and successfully maintaining it.
Without your having done is successfully before, I really doubt a Hard Money lender will advance the funds.
What I suggest is that you team up with someone with funds or good credit and invest together until your credit gets repaired.
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I am a mortgage broker in Florida. I have just done research on hard money lenders. The ones that I have spoke to lend on the property at 65-80% . They do not look at credit reports, but rates would be between 12-15%. A few told me that they are extremely busy and are now looking at only high dollar amounts. I have alot of experience working with less then perfect credit.[ Edited by commercialking on Date 07/23/2006 ]
Thank you so much for the very helpful replies. Only wish I had found you a year ago!!!
Fortunately, despite credit issues, I still own 4 properties (3 of which are investment) and have access to about $100K. Will the management of these properties be considered in fulfilling the management experience requirement? Also, can you reply as to size of loans hard money lenders are willing to deal with (are we talking over $1M)? Any further help would great!
Yes, you can definately get to at least to 90% with bank financing.
You should also consider that 4-plex investing still qualifies as residential, and you can buy multiple 4-plexes using residential 95-100% LTV programs. Have a great Holiday Season.
Bob G.[ Edited by commercialking on Date 01/07/2007 ]
Yes you can definitely go above 80% financing but credit, assets and of course cash flow will be important pieces of the puzzle. [ Edited by commercialking on Date 07/26/2007 ]
Hi
I know a company that offers 100% Non-Recourse Assumable Multifamily Financing available "NATIONWIDE" with rates around 5.75% 40 Year Fixed Term
There program is based on Income producing on the property not personal
They also offer Corporate Cash Lines of Credit from $350,000 to $5Million and higher.
[ Edited by commercialking on Date 07/26/2007 ]
If you know of any Lenders that do 90 LTV financing on multi family, can you email a number. I have cash flow properties.
Quote:
On 2007-01-19 23:15, windycitycommercial wrote:
Yes you can definitely go above 80% financing but credit, assets and of course cash flow will be important pieces of the puzzle. Email me and we can talk further.