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Multi-Family and Apartment Investing

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Michael Klinger
  • Rental Property Investor
  • Rancho Mirage, CA
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95
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Multi-family 1031 Chicken? Egg? Conundrum?

Michael Klinger
  • Rental Property Investor
  • Rancho Mirage, CA
Posted Oct 9 2017, 13:37

Sold commercial office. Now in a 1031.

I have a few weeks left on my identify period. After years to think about it, I have just a few weeks to get a deal in place.
The years of thinking about it process, strongly persuaded me to head in the direction of out-of-state multi family with professional management, when the time came. And here we are.

Without getting specific about the amounts, it's quite a bit more than one's first duplex. So what i have in exchange money could become quite a number of units, depending on how much leverage I would want, and dependent on securing such a loan.

The issues i am having, are this:

1.) Even though I am an experienced small business person,  and an experienced commercial property owner, I apparently can't necessarily run around with my down payment money, call it 25 percent down and expect the deal to be pushed through. So far lenders seem to want to know that there is some level of experience level in that specific sector, and if not then other factors have to considered and maybe concessions made. The size and/or quality of the deal seem to be at stake.

2.) Chicken and Egg: I can't seem to (so far) get a lender that will work through the scenario with me, so I don't otherwise waste everyone's time. The lender says " Show me the specific deal, with a viable offer that is already in striking range of acceptance and we'll run it by the underwriter. The Broker says: Bring an offer with proof that you can get the deal funded.

3.) I'm not feeling a whole lot of motivation from the parties I am contacting to take me seriously. Admittedly, I am not connected, not part of the good old boys network. My money is real. My need to push through this 1031 is real. I'm sincere and ready to go on a rational deal that can get funded and close and meets my goal which is a priority on income.

Thoughts?

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