How to be creative for multi family housing

Question

Hello! Newbie here.  I'm looking at a listing for a 46 unit multi family property with NOI of $252,500/year. Asking is $4M. Is there has to be a way to financé $4M for about $200-$225k/yr (in other words, near zero down) leaving about $25k cash flow? Called local commercial lender and they have so many onerous conditions that it's virtually possible to cash flow. Thanks

Don Konipol · Answer

Short answer - no

Brent Coombs · Answer

Hmmm. In 2004 the bubble was already forming. Who says it's worth any more now?

eg. What was it worth in 2009-10?

I'm just saying: there's plenty of 10% NOI ones out there, so why would you go for a 5% one?...

Sumeet C. · Answer

Seller paid $2.5M for property 12 years ago.  Which areas would one be able to find properties with similar NOI for $2M?  Maybe I should be looking there. Thanks

Brent Coombs · Answer

In markets elsewhere, the same $252k NOI might only cost you TWO million dollars purchase price!

Lenders are well aware of this.

If Borrowers have no skin to put in the game - which property will they lean towards lending to?...

How to be creative for multi family housing

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