Looking for a 5 unit financing program

[Timothy Stoops]

My partner already owns 1 5 unit and is trying to aquire a 2nd one. But the lender cannot touch them because of being considered commercial.

[Jeff Copeland]

Quote from @Kaiden Swainamer:

Quote from @Jeff Copeland:

You simply need a commercial lender. They are not hard to find. 

Conventional Fannie/Freddie backed loan products are for individuals, and 1-4 unit properties. 

Commercial loans are more commonly utilized by business entities (such as LLCs and corporations), and, in the case of multifamily, more commonly used for 5+ unit properties.

When working with a commercial lender, I too am looking to move into the commercial space. What credibility do they look at in an LLC/Corp? How do they process loans for a new company, and what steps can a new company do to prove their credibility to acquire funding?

They will primarily be concerned with the asset: Income, Expenses, NOI, and DSCR.

In real estate, it is not uncommon to create a new LLC for each property, so they will be less concerned about the entity itself.

More like 80% asset & DSCR, 20% borrower (credit score, cash reserves, etc).