How to raise money to buy an apartment complex.

Question

Me and my significant other are highly interested in buying our first property in MD. It’s a 12 unit apartment building.

I would like to know what are the different types of ways we can finance it. We both have 700+ credit scores and he has $50k. We need a total of $250k for the down payment.

Any help guidance, assistance, or tips  would be nice in reference to the best ways to get funding.

Thank you in advance!

Taylor L. · Answer

This may ultimately be too small to make sense as a syndication. Syndication has fixed legal costs that are in the tens of thousands, and may eat up too much of the budget for a property like this. This may make more sense to take down as a JV with other active participants.

Aaron Gordy · Answer

You can ask for the seller to carry back a portion. Reach out to family and friends and see if they would be interested in 2nd liens or partnership type deals. Reach out to a mortgage broker and pose the question. You should also go to your local bank. There are a variety of ways to get a deal like this to the finish line.

Joe Splitrock · Answer

Others mentioned syndication, but this is probably too small for that. I would reach out to friends, family or business associates and look for someone who may want to participate. You could also network with local investor groups and look for someone who may be looking for a project to invest in. You could potentially get a hard money loan, but generally the rate is higher and term is shorter, so you will need a plan to pay off that loan.

Monique Dunmore · Answer

@Carl Millsap Thank you

Carl Millsap · Answer

@Monique Dunmore research multifamily syndication.

A couple podcast:

Apartment Building Investing w/ Michael Blank

Multifamily Investing w/ Charles Dobens

Real Estate Investing for Cash Flow w/ Kevin Bupp

How to raise money to buy an apartment complex.

Most Popular Reply