Team BP - hope all is well.
Snagged a 4-unit building here in AZ, working through escrow right now, and wanted to share something I've found.
Long story short, the place is completely clapped out, and needs a pile of work on the outside/mechanicals, and the price reflects it.
Historically, funding has been my achillies heel, so I went digging. Found 2 lending programs that I'm very happy with so far, not pitching, just sharing. PM me if you want actual contact details.
Lender 1 - based in LA, CA - does 8.5% "hard-money" type loans for acquisition and repositioning. 80% LTV and once you've done a deal, they'll do purchase/reno on your second one. Their weapon - speed. Hard money at a discount. Tastier than a box of donuts.
Lender 2 - also CA based. this one excited me a lot, they have a 30-year fixed product that is lease-based, and 80% LTV. Basically, if your credit doesn't suck, (700+) and your existing leases cover PITI, you can get fixed financing, they do both multi-family up to 10 units and mixed use, but nothing commercial...I tried.
The rates from lender 2 are about .75% higher than a full-doc conventional (just had a friend close one), but to me, the lease-based thing without worrying about DTI's was a big relief. They also don't mind raggedy stuff, so if you have a nasty one, they work well.
Right now we are a week in on lender 2, and they have my approval on the table for this friday, and can close 5 days after.
Yes, I'm paying a little more in interest, but the deal can handle it, and as we all know, moving quickly is about the only way to snag deals in certain markets...
Hope that helps!
Nice find. =)
Do you know if your lenders will lend in nj? Looking for short term financing on a mixed use property.
That's great to hear @Darwin Crawford ! I actually just came from a real estate trip in the area, couldn't explore the area too much but I'd be interested in knowing what area you found the units? Outside of Scottsdale Ave, lots of open space and luxury properties.
Well. I closed on it.
And as expected, its a DUMP. As in a total dump.
Lender got the job done, took a few of the usual "hurry your a$$ up" calls but we managed.
@James McCreary - happy to hop on a call sometime and do a google map tour, just let me know what you're looking for.
My contact info is in my profile.
@Darwin Crawford - Would appreciate the contact information for the lenders you mentioned. Currently working on a MFH rehab that I would like to talk to them about.
Hi @Darwin Crawford ,
Thanks for sharing. Can you PM me the lender information also? When you say multi-family up to 10 units, does it have to be multiple 1-4's, or can you have a 10-unit building?