aprtment complexes 6 posts by 4 users

Posted: 08/22/2008 at 05:32PM

New investors are getting funded. I have a friend who just bought an 18 unit building in Decatur, GA. His financing is through Bank of America, it was his first multifamily deal.

If you have a deal you are considering, post the details up and let's see what we can help you come up with.

Posted: 08/23/2008 at 03:57AM

Paul,

Reese was approved for two different lending options through BoA.

One included full purchase and rehab, the other required 20% down and rehab costs paid out of pocket with a streamlined refinance process once the rehab was complete and the occupancy reached certain goals.

Since Reese had someone willing to front the money, he chose the second one because the terms were much more attractive

I've heard others talk about getting mixed signals. This some times happens when hypothetical preapprovals are sought. If you have a specific deal and sit down with a commercial lender there shouldn't be any mixed signals.

Posted: 09/10/2008 at 12:51AM

Here is what is need:COMMERCIAL LOAN SUBMISSION CHECK LIST: # Item Received Comment
1 Project/Property Description Overview
2 Pictures & Map of the Property
3 Preliminary Title Report (if available)
4 Copy of Purchase and Sale Agreement (if applicable)
5 Executive Summaries
6 Use of proceeds
7 Repayment Plan / Exit Strategy
8 Existing Appraisal Reports (if available)
9 Pro Forma Balance Sheets
10 Other Existing Third Party Reports
(Environmental/Engineering if available) Phase 1 & Phase 2
11 Comparable Rentals or Sales (if applicable)
12 3 Years Operating Statements of Business
13 Current Rent Roll showing concessions (if applicable)
14 3 Years Tax Returns of Business (if applicable)
15 Company Organizational Documents (if applicable)
16 Zoning Information (if available)
17 Permits/Status (if applicable)
18 Principal(s) Personal Financial Statements
19 Principal(s) Resume or Bio.
20 2 Years Personal Tax Returns
21 Copy of 1st Note, 2nd Note (if applicable)
22 Completed Application Form
23 Signed Commitment Letter
24 Good Faith Deposit

Most are at 90/10 LTV.
10 % down. The more the better .

Do your homework on Cap Rate,NOI and DCR( Debt coverage ratio)
Ask other apartment owners in the area to test the water.
I hope this help to get the loan approve.