Real Estate Syndicators

5 Replies

Hello all !!

I’ve been looking into Real Estate Syndicating for some time now since I’ve been reading up on it and been practicing making fake deals from LoopNet and Crexi I’ve came a cross a problem with my research and can’t seem to find it .. if an apt complex needs renovating and is completely vacant .. how are you able to pay the mortgage ? I was thinking asking more from the investors to cover the first few months until we can get the property up and running but what other solutions are there or creative ways to make mortgage ?

@Vante Jay

If a complex required a large amount of renovation (an unstabilized property); the loan you get would not be a typical Fannie/Freddie loan but most likely a bridge loan. It is not uncommon for these loans to have a period with no payments; 12 months or so.

@Vante Jay

Bridge loans are a lending product that are for experienced operators. I suggest you do not use bridge loans on your first investment or that you purchase a property that requires a lot of work.

Yes, our company was recently approved for a bridge loan and no payments for 12 months was one of the terms. The rate however was probably 4.5% higher than a normal Fannie/Freddie loan on a stabilized property. 

@Vante Jay

If this is your first commercial purchase; you probably will be using a local bank or credit union loan.

Before you start looking for properties or loans; I would do a self-assessment. How much money do you and your team have or have access to, your experience, net worth, credit etc. These are all factors that should be reviewed prior to looking for properties. This will give you an idea of what you can purchase with traditional commercial financing (25% down) and start your search from there. I mentioned "traditional" since you could find a seller that will hold paper for a lower down payment or other situation that would not require 25% down.