Updated about 3 years ago on . Most recent reply
investor 100% financing
Hello,
I was offered 100% finance 96.5% first loan and 3.5% second loan mortgage for a multifamily the 2nd mortgage for that 3.5% MUST be paid back, but just like the first mortgage, it doesn’t have a PPP and it
could be paid off on the 6 month mark with completely no restriction or penalties.
what are your thoughts on this finding option?
Most Popular Reply
Who's offering the financing? The seller or a bank? What are the rest of the terms? Interest rate, AM period, I/O, adjustable?
What type of MF/how many units? Will you be moving into one of the units?
As far as what I think about the funding option, it sounds great, but it all comes down to the term info you provide from my questions above and the cash flow the property will generate. Is it enough to pay the mortgages, taxes, insurance, PM, repairs and maintenance along with leaving you a nice cash flow to take care of Capital Expenses and put money into your pocket?
What type of MF/how many units? Will you be moving into one of the units?
As far as what I think about the funding option, it sounds great, but it all comes down to the term info you provide from my questions above and the cash flow the property will generate. Is it enough to pay the mortgages, taxes, insurance, PM, repairs and maintenance along with leaving you a nice cash flow to take care of Capital Expenses and put money into your pocket?