Rental Property Investor · Salt Lake City, UT · Member since 2015 · 32 posts · 9 votes
BP,
I'm looking for financing for a Multi-Family property in Utah. My hope is to put the least amount of cash down on the deal (less than 20%). Seller financing unfortunately is not an option on this one. I've visited local banks and 20-30% seems to be the norm. Any recommendations for a lending source would be greatly appreciated!
I have more details to provide the lender via a private Message.
I have experience in managing rentals and currently have 3 SFR that I rent. I have 720 FICO MID score and have been employed by the federal government for the last 13 years. I'm looking at terms between 3-6 yrs with a 30yr amortization. I would be putting 10% down. Deal is less than 350K.
Private equity, commercial, Utah, salt lake, financing, hard money, capital, fund,
John
Will the seller carry back a second? For example, you may be able to get a commercial loan for $245K (based on a $350K purchase price) which would go to the seller. In return, the seller carries a junior note for $70K and you come up with the remaining $35K.
Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
10y
John,
We would fund the deal pending the asset checks out. But our min down payment on commercial, multifamily purchases of 5 or MORE units requires 25% down. On 5 or LESS units and single family, we can allow just a 15-20% down payment. Our financing is higher interest than bank financing and short term money, so may not be a fit for what you need. Let me know if we can help!
Real Estate Agent · Highland, UT · Member since 2015 · 407 posts · 272 votes
10y
@John Hill Mountain America Credit Union has an investor loan with 10% down. I don't know what the name of it. Brett Villinga works in Utah County but he is an awesome loan officer. I've had buyers who are from the corporate office in SLC and they choose to work with Brett because he gets the job done fast!
Rental Property Investor · Salt Lake City, UT · Member since 2015 · 32 posts · 9 votes
10y
@CoreyDutton thank you! That's basically what the banks and credit unions are offering with a lower rate. I'm assuming the advantage with your company is possibly a Quicker funding timeline?
Rental Property Investor · Salt Lake City, UT · Member since 2015 · 32 posts · 9 votes
10y
@Corey Dutton thank you! That's basically what the banks and credit unions are offering with a lower rate. I'm assuming the advantage with your company is possibly a Quicker funding timeline?
Rental Property Investor · Salt Lake City, UT · Member since 2015 · 32 posts · 9 votes
10y
@Becca Summers thank you! That deal is on units that are less than 5. This one has 10 and therefore falls under commercial lending. I've tried MAC but thank you for the referral..
Will the seller carry back a second? For example, you may be able to get a commercial loan for $245K (based on a $350K purchase price) which would go to the seller. In return, the seller carries a junior note for $70K and you come up with the remaining $35K.
Lender · Nashville , TN · Member since 2015 · 19 posts · 1 vote
10y
John,
The normal commercial down payment is 20-25% for almost all lenders. I work with a CA lender, and they handle small balance commercial, but you can still expect that same amount of down payment. They do offer rates that are not hard money, which is a positive side.
Becca is right, MACU's 10% down portfolio loan is a great one, but only up to 4 units, max $425k loan amount and maximum 2 loans per borrower.
Washington Federal is also a great one, but I don't think they will do under 25% down.
You could try speaking to Velocity Commercial (Disclaimer: haven't used them yet). It will be expensive (like 8%ish) but they may operate like B2R and Colony in that they may go by LTV and not LTC, in which case you could somewhere if you're buying sufficiently below market.