Where do I find 90% LTV funding for putting all my properties into an LLC while purchasing a larger property? The opportunity's numbers are great for my long term buy and hold, just don't know where to find the private money funding. Not looking for 'hard money', knowing how banks 'value' properties, I am not too fond of that route either.
Deal is a SFR, 12 unit apartment mini-complex, a 14 unit mini-complex with coin op laundry. $772,000 funding needed. Value is $863,000.
30 year mortgage at 5%: $49,732; NOI: $70,862; DSCR: 1.42
DSCR without yearly reserves and budgeted repairs holdings: 1.79.
Assumptions are with 85% occupancy, no increase in rent, and I don't know where else to go for brutally honest opinions.
I don't know anyone that will go 90% unless you have strong personal credit.
If I could find private money at 5% on a fully amortized 30 year loan at 90% I would be jumping up and down. Why 90% LTV? Is that some sort of magical number that will cash you out of your current deals or did you just use the number for example sake? You are essentially looking for a commercial loan if you are seeking 5% or below. You might be able to find a private investor that would bite on that deal however it's going to be close to impossible. Or their could be friends/family that would do the deal because they know you and don't care so much about the return. I'm guessing that's not possible since you posted on BP.
A local or regional bank would have an appetite depending on your personal credit, financials, and property financials. However they would probably be at 75-80% LTV, 5% or less, 20 year am, 5 year fix or ballon (depending on your area). If you had a long standing relationship, large deposit accounts (held at the bank), excellent income, and strong property financials they might consider doing 85-90% LTV however those would be extremely rare instances.
If you want low interest rates on the portfolio you are going to have to go to a local or regional bank. If you connect with enough banks you should be able to find one that will do 80% LTV on the refi. Have the properties been seasoned for over a year?
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