12 Plex Financing- KANSAS City

3 Replies

I am a Developer In KC and started construction on a 6, 12 plexs that I will be selling to Investors. I have done this 100’s of times with my 4 plex projects and always sell at a discount and let the owner realize immediate equity. It gets me out quicker and I don’t have to hold the entire project. In the past I have always lined up Investors with a local lender, but this lender doesn’t do 12 plex financing. In short, I am looking for general comments on what is seen nationally for a $1,392,000 purchase. Can someone lever 20% for 30 years....Or will it be 25% over 25 years. THANKS FOR YOUR COMMENTS.

@Andy Mackey most of the loans I have been shopped over the past few years for multifamily have been 25 year amortization/5 year term loans. My loans have all been in the Chicago area or in South Bend, IN, but I am guessing thy would be similar to what you are looking at in KC. If your deals are over $1,000,000 there are some additional options though as they can almost qualify for agency debt. I know the threshold is right around 1 million to qualify. 

If I were in your shoes, I would speak to some local banks and see if you could line up some type of sweet heart financing that you could offer with the deals. 

Good stuff John- Let me know in the mean time if you have any investors that might be interested. Your comments were spot on. Much appreciated.  

Last question - do you find most banks require occupancy, i.e. 50-75%.  My local 4 Plex lender will do 25-50% occupancy and some investors qualify with no income. 

Andy

Well Fargo bank now will lend up to 1 millions dollar with 20% down and fix term up to 30 years. Worth to check them out,They usually have higher interest.

  otherwise  most mortgage broker will do Amortize 20-25 year and 5 year term with lower interest .