I am buying an 8-plex in Albuquerque New Mexico. I thought the seller was originally going to carry for at least 6 months, but I misunderstood.
Instead, I need to either secure bridge funding for 3-6 months or find long-term financing.
Apartment complex is fully occupied and not in need of any repairs.
1 3 bedroom
1 2 bedroom
5 1 bedrooms
Majority of rents are currently below market.
Example: Current tenant leaving next month paid $650 rent for a 1 bedroom. Raising rent to $950 and have 4 applications in 2 hours from just a placing a Craigslist ad with no pictures. Albuquerque rental market is on fire.
Current rent roll is $6300 per month before increases.
Purchase price is $610,000.00.
Thank you for considering.
Congrats on your deal! Financing options and terms will be dependent on your situation. Are you a first time buyer, first investor? How much do you have to put down? You've got two routes depending on your profile. Full doc A-paper style loans or lite doc/no doc loans that would base their decision on value of the collateral, cash flow, LTV, credit and experience - some lenders are even ignoring DSCR on commercial projects. I'm likely leaving a few things out because requirements are going to vary.
A local bank is probably your best bet. They are going to know the market and understand that it's a good deal. Local banks are more apt to want to invest in their own market.
Hey Andrew, Albuquerque broker here, is the property on a single lot or are the lots separated? Anything more than 4 on one lot will require commercial lending, with 4 or less there are more options. Let me know and I can send you some recommendations either way. Thanks!
All on one lot. If you are local, I'd love to talk.
Thanks for the input Adam. It is much appreciated.
@Andrew Alvarez Check out crowd funding resources like Groundfloor. Don’t know for sure but it might be helpful.
@Andrew Alvarez your best bet is a local lender. I have worked with WaFd and Sandia Area FCU. However, going with bank financing will take time. Probably 30-60 days at least.
It was a pleasure listening to you speak at our Friday night meet up a few months ago; thank you.
I am in talks with WaFd now and Sandia Area CU is next on the list. Yes, the processing time is a killer, but I cannot let it become a deal killer.
I may need to use one of my hard money people to buy the property to stop the clock, then look at either doing a real estate contract with them or a standard purchase from them.
Working on the plan as we speak. Your feedback is greatly appreciated sir.
Sandia CU would be my recommendation, but the underwriting for any local bank is going to be super slow. They are all backed up with deals and it will only get worse since it is EOY and we have the holidays
Thanks Dave. That is my experience. I believe I need to find bridge funding that will buy the property until the bank approval is done.