Does anyone know of any agency debt that services 5+ units and under $1m dollars? Why is there such a large gap in available products for RE Investors for buildings like this?
There is only a gap if you're set on only getting agency debt. There are other products for what you're looking for.
As for agency, you can potentially get agency loan in the range of $700-800k though you'll have to push for it.
I've been told that agency debt can go as low as $750k, but there are various loans available through smaller banks and even some large banks in that range. The best financing options start above the $1MM mark though so it doesn't hurt to just look at bigger deals.
If you are looking for different funding other than agency debt , I would be happy to help with any questions you have.
John Casmon, Nicky and I are already looking! Meantime, we found a great lender for the 6 unit and we close today (also my b day)!!
I was more questioning why there is such a large gap and essentially what the underlying reasons are. Even if it was possible we were just unaware of options!
Let me know if I can ever help with any canvassing, due diligence, or underwriting. Would love to throw my hat in the ring with you.
Thank you everyone for the input! I’m specifically looking for agency debt that bridges the gap. Understanding that $750k is a starting point is a huge help!
@Rinee John de Leon In short, the government sees smaller deals as more risky so decided $1MM was the magic number. Will definitely let you know how you can help as we continue to grow.