Who will lend on 2000+ unit portfolio

Question

Trying to find a good lender in the Houston area for a 2,000+ unit portfolio and 100MM+. Does anyone know some good lenders? Thanks

Joseph Gozlan · Answer

Account Closed meant is that if your the front runner on 100MM deal, you've done a few deals before and you already know who/which lenders will fund a deal this size...

Jay Hinrichs · Answer

sounds like insurance company maybe a fit.. or Colony

Account Closed · Answer

@Mark Allen I did not mean to suggest that anyone with the down payment could get the financing.  I meant do not bothering to ask if you do not have it.

I have been the registered agent of a company that had a $100,000,000 line of credit from a private equity firm in Houston.  So I know a fair amount about getting financing.  I also know what it is like when they come collecting but that is another story.  LOL

He has not even told us what he has in mind to do with the 2000+ units.  If he is planning on a buy and hold and they are 98% rented, and he plans on agreeing to keep the management for the next several years, and he has enough reserves, and his partners have the experience of owning large complexes and he is not in a hurry it should all work out fine.  LOL

Account Closed · Answer

@Mark Allen   If they have the appropriate down payment it is a good time to ask.  Of course, I am not sure @Brad Lowery gave enough information.  I am wondering what percentage of these properties are hurricane damaged.  There will be a huge difference if you talking about 5% needing repairs or 95% needing repairs.  I would suggest going local money if you are doing a huge amount of repairs.  Yes... everything is bigger in Texas there are sources of financing in Houston that can do a $100,000,000 line of credit to get the repairs done and then move into a standard mortgage.

If Brad wants to give more information maybe we could be more help.

Joshua Nicholas · Answer

You haven't supplied any information.

In-Place NOI?

Purpose? (Coupon clip? Repositioning?)

Term?

Why 80% LTV? (At a deal of this size and price point you're going to have alot of institutional guys willing to put out patient capital expecting stable but moderate returns. Also unlikely you'd get a Fannie Mae 80% LTV if the properties are decent as the debt yield wouldn't pass muster.)

$50k/door seems suspicious for the portfolio, why is it such a low price per unit?

Which Houston submarkets?

Again, you gotta supply alot more information before anyone can direct you to the right people. DM me if you actually want some referrals, I know some people at Meridian, Cooper Horowitz and Madison Realty who should be able to get you sorted if this a real opportunity.

Anthony Dooley · Answer

I can finance that loan. If he puts 99% down and he is willing to pay me 10%.

Tim Milazzo · Answer

Houston - is the property damaged? Is this a repositioning play? What does the Capex needed look like?

2000 Unit Multifamily - how many are occupied? What's the NOI or Cap Rate?

Brad's team - how much equity is being brought to the table? Do you have other assets in Texas? Have you asset managed multifamily at that scale?

The answers to the above question will fork the answers in different directions.

If stabilized, strong track record, not much capex: insurance companies, Fannie/Freddie, major banks, HUD

If repair/transitional: Major bridge lenders, debt funds, certain banks

If no track record or not enough equity: good luck

Eric Schleif · Answer

What is the average/typical building size of the portfolio? I'm obviously biased but you should contact a good commercial loan broker for a deal that size, especially if you are asking this question. Depending on a few factors, there are probably better options other than Freddie/Fannie and Colony. Good luck with the deal.

Who will lend on 2000+ unit portfolio

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