What Type Of Financing For Apartments?
I am considering buying a 29 unit Apartment complex that is almost fully rented. The seller says that he has $15800 in gross a month. What type of financial would a person be looking at for something like that? I understand credit score must be good. I mean like term, 100% financing, do they do arms?
How should I approach this as far as financing is concern?
Sean
i guess you can give the seller a mortage on another property in exchange for the downpayment.
I bought an apartment building about 3 months ago, and I got a small local bank to do an 80% loan, at 7.5% interest, and the seller could carry whatever they wanted. The small banks seem to be more flexible
It is hard to believe the appraisal would not come in at $175,000. The best approach is to talk to the lender about getting an appraisal under the cash flow method and if the lender is ok with that hire a different appraiser and have the cash flow analyzed. Not all appraisers are qualified to do that kind of deal.
Of course the other option if it is really a good deal is use private money and then it is irrelevant what the appraisal says.