I got a potential deal lined up in Illinois. It's a 16 unit building with 15 units rented out. No major issues. I talked to the owners and the are willing to finance 30% of the loan. I talked to banks and they will not finance due to lack of history in real estate. Any ideas on financing?
About how much would you be purchasing the property for? How much would the loan be? Down payment?
I'm interested in others' ideas and responses to your question.
If you don't have much experience in real estate it would be difficult getting financing on a multifamily property. One idea would be to focus on networking, if it is a good deal and you can present it to someone with more experience, you could pick up a partner on the deal and together you may be able to obtain financing.
@Shane Cook , there are many options. You could assign the deal to another investor and take a referral fee. You could partner with another investor who has experience in real estate and can get financed. You could purchase this with a loan from a private lender. The beauty of real estate is that there are usually multiple ways of approaching any situation. Of course, the correct answer for you will depend on your circumstances, resources, and ambitions.
IL Agent # 475166354
If you haven't listened to the podcasts I would suggest starting on #135. Great information, they emphasize 50% of a great deal is better than 0% of no deal. Also, you can gain crediablity so you do not have (much) problems getting funding later if you decide to go solo on a deal.
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