Looking For Financing Tips On Multiple Purchases.
I need to put together a portfolio/proposal etc to lenders for commercial loans I am offering to them..
Does anyone know where you can get software to write such proposals?
Also if you know how I could raise $4.1m be the end of the month I would be glad to hear from you.
I have $100k to chip in, just need 40 others.
Property is a whole street, entirely rented with full occupancy. Are 17x 2 bed. and 5 x 3 bed. Apartments.
Income $180,000 pa.
Supposedly $ 60,000 in expenses.
Asking $2.5m
(I figured this too high for asking price based on positive cashflow vs NOI.
The others are a mix of commercial and residential multis in Washington DC, in highly desireable area also fully occupied with good leases in place.
There are programs out there that you just fill in the blanks, but so many people use it that it wouldnt do you any justice. Also they are geared towrds commercial lending for business entities, more so than straight real estate. For this I would suggest hiring a comany that specializes in writing business summaries. The cost will be anywhere between 500 to 5grand dependant upon what you want in the report. 500 bucks will get you a 20-30 page report with no frills, 5 grand will get you a multimedia CD, a well written report with graphs and industry standars etc etc.
If at all possible seperate the purchases so that the single family homes are seperate from the apartments. Otherwise you will be asking for a mixed use loan which will be at a higher interest rate.
If you prefer to look for investors to partner you will need to set up an LLC and have the proposal available with a set plan with income guaranteed. I would suggest looking for fewer people with more monies. Also if you are going to get investors, you will want to show at least 12% profit on there monies each year income, and a big payoff when you sell them after a certain amount of time.
We cannot recommend any lenders, or allow you to advertise your offering in the forum area, but everyone here can help you get it set up and then you can post it in the appropriate areas.
Good Luck,
Kyle
Hi Kyle
Thank you for your reply. Much appreciated. I actually managed to get in touch with a fellow investor whom has a pre formatted proposal, and I now have that.
I also forgot to think of seller financing in this deal as I can raise ten percent easy enough with another partner, and will sit down with the seller and see what he intends to do with the cash.
Thanks again.