Tips on Securing a loan for Multi-family / Apartment building

Tips on Securing a loan for Multi-family / Apartment building

Realtor · Tulsa, OK · Member since 2018 · 13 posts · 4 votes

Hello, I'm looking for advice on securing a loan for a multi-family property. I have great credit and a reasonable cash reserve, but not quite enough for 20-25 percent down so I will need to mix in some creative financing options such as a second position mortgage or partial seller financing.

Outside of good credit and a detailed project summary on the property, what can I do to build credibility with a lender and secure more favorable terms on a loan? 

Any advice is appreciated. Thanks! 

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  • Investor · Kansas City, MO · Member since 2020 · 400 posts · 278 votes
    3y

    Commercial loans (5+ units) typically require some type of commercial experience, so having experience managing similar properties will be a big help. If not, having a partner who is willing to sign on the loan and partner on the deal would help bridge that gap and maybe that partner could also provide the additional gap funding.

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