Novice Investor needing some assistance

[Edkesha J. Anderson]

Good morning everyone,

I have located a large scale multifamily property (96 units fully occupied). My question is in regards to how the financing of such a large scale project works. The property is priced at just under $3M with an NOI of $285,255 annually. How does one go about securing financing? Is it a typical bank loan or are there other mechanisms available, especially for novice investors? Any insight would be helpful.

[Cody L.]

Local bank: expect 5%, 5 year fixed, 25 year am, recourse.

Freddie: expect low 4s, 10 year fixed, up to 30 year am, non recourse.

Freddie is harder / longer to get.

All will require a buyer with exp even though property and its financials are the main criteria.

For first deal find a lending broker. They'll add a 1 point (%) fee.

Source: I do this all the time