How To Get Started In Multi Family

how do you begin investing with multi fam. when you need 20% for 5+ units and the 3-4 unit buildings are so over priced(expecially in the chicagoland area) to the point where there is no cash flow. experianced investors please give me your advise. I have great credit and about 30k i want to make this happen I am thankful for any advise.

Comments(4)

  • roberth23rd May, 2005

    If you can come up with $50k in closing costs, there are some lending programs out there that will get you into a apartment. You must have good credit and a decent cash flow. 20% down is not necessary.
    Good Luck,
    Robert

  • Jerel25th May, 2005

    Roberth,

    Can you elaborate a bit on you last post?

    Jerel

  • roberth25th May, 2005

    Quote:
    On 2005-05-25 11:08, Jerel wrote:
    Roberth,

    Can you elaborate a bit on you last post?

    Jerel
    If your credit is at least a 650 and the loan amount is between $1mill and $1.7 mill you can get 100% financing for apartments. They must have good cash flow a Cap rate10 DSCR 1.35 this is done with a equity investor involved. You must have $50k for closing costs and refinance in 5yrs to take out the equity investor. The terms e-mail me and I will give more info.
    Good Luck,
    Robert
    [addsig]

  • Proactive126th May, 2005

    Hi Robert,

    That post was very informative, I never knew you can get 100% financing on a commercial property with the selling price being $1M - $1.7M, one can always make the seller pay for closing costs to cover the $50k right? I am always interested in 100% financing deals and didnt know you can do that with a 26 unit as you stated. Is there more to it than just what you stated, I have been told by lenders you need at least 10% down. Can I get the seller to do a carry back of 10-20% and finance the rest through a mortgage broker, what are your thoughts? Thank you!!!!

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