Financing apartment complexes

4 Replies


I’m an investor out of Alaska. I currently own 2 single family homes in Michigan (phenomenal ROI) and a duplex in Alaska. Currently working on my second duplex in AK. (Real estate is awesome) :)

I’m looking to purchase a cheaper apartment complex, to start with- I’m able to find banks that’ll lend at a 80% LTV, which is about average.

My question- can I get private money lenders to finance the other 20%? The banks might have contingencies that prohibit that, which is why I ask.

My idea was to go to or to get the other 20%- which the interest rate would be VERY high (around 24.99%). I’d spend the first year paying off that loan quickly so I don’t incur all that interest. I don’t mind hustling and working to make my dream a reality

I know this is a risky, and kind of odd game plan, but I’d be interested in hearing your thoughts.

Thanks- and happy investing, my friends!


Hi @Dean Gustafson , in my opinion, it may be tough to find a bank that will lend 80% LTV, when the primary borrower (you) doesn't have any skin in the game. I would try to cut that 20% equity loan back as much as you can, maybe by borrowing from friends or family to get at least 5-10% down. Putting myself in the shoes of the bank on the 80%, I would have the feeling that your priority is paying back the 20% loan, not my loan.



Thanks for your response! Yes- I can see how that would be troubling with the Bank. But being a little more creative- such as borrowing only 5-10% like you said, might be a good idea.

Hi Dean,

I am not sure this is the best way to go about it. Are you able to find traditional lending after you get the money from the P2P lending source? 

Hi @Edward P

I can get the funds P2P but would a traditional lender allow that with commercial loans?

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