My 10 Unit Apartment Deal Going South!!!
I have this ten 2/1 apartments under contract. My banker said originally that they would finance it as they did another one for me 7 months ago. I did not go to other banks because we have a good relationship with this local bank. One day after my 14 day due diligence period I recevied a call from my bank saying they would not finance it because it was too soon, and because they were not sure about the market in that city. I understand that they need a one year sesoning period, but I wish they had told me that before the end of my due diligence period. I understand it is my fault to for not going to other banks and have a plan B. Now I have gone to other 3 community banks. Two are interested but have not commited to finance it yet. I have 7 more days of financial contigency. If I am not able to secure financing, I will lose this deal. The deal consists of two duplexes and a six plex built around 1973. All of them have defferred maintenance of about $50,000 in all. My guys and I can easily do those repairs for less than that and bring them to class C apartments. They are rented below market, average $350/mo. I already own a few rentals in the area and they are esily renting at $500/mo when repaired. At this point, I am open to any option, including parnerships. The deal is in North Ga. I have a home equity line of credit close to $100K. Any suggestions on how to increase the chances of getting financing? Thanks for your input guys!