Buying packaged multifamily properties.

3 Replies

If you want to purchase two or three 4-unit multifamilies as a package deal from a seller is it then recognized as a large multifamily purchase? Or is each property still recognized as their own individual small multifamily? 

Would you just get the bank to set you up on separate conventional loans for each property? Or is it at all common to get one loan to purchase both or all three?

In theory both options are possible, it depends on the bank.

If you get a blanket mortgage make sure you understand if you can sell each property separately if needed

@Shane Thompson

Hi Shane

It all depends how you structure. When we purchase 281 units, we created 2 LLCs and put 156 units in one and 125 in another LLC. We needed to get 2 different bank loans. We did this because the 156 was all in one location, and the 125 was located all pretty close to one another.

You can purchase all 3 together with one loan, depends on what you are trying to accomplish. If you are looking for entity protection, I would set up different LLCs. If you want to sell or refinance one, it is much easier

Gino

Join the Largest Real Estate Investing Community

Basic membership is free, forever.