MULTI-FAMILY Financing Advice

[Michael Ellis]

Hey!

My partners and I have a property that would cash flow right when we buy it and of course there is potential to possibly almost double monthly rents. Sell price is 2 million so we would be putting 500k down. This property meets all the requirements our bank told us it needs to meet, but they are only willing to finance 600-700 thousand. It is the first time we are using this bank so I’m not sure if that’s the reason?

What advice do you have? Is this normal? Any ideas on creative financing?

[Robert Rixer]

It's usually banks limiting their downside risk. If you think about it, the more equity you have in the deal, the lower their risk yet they still make the same percentage return on the capital they lend out. Shop around, either with other banks or go through a finance broker.