Rental Property Investor · Kokomo, IN · Member since 2019 · 1 post · 0 votes
I have found a 222 unit complex. It has 42 efficiency apartments, 160 one bedroom apartments, and 20 two bedroom apartments. It has “100%” occupancy. I am just unsure where to start when looking for financing. Anyone have any suggestions?
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
7y
@Justin Hobbs Great to hear on the potential deal! A commercial bank loan would provide you with the best rates. However they're going to ask (1) what experience do you have in managing apartment buildings, (2) Do you have the down payment ? You didn't mention the asking price.
Beyond that they're doing to ask for rent rolls, deferred maintenance, all the numbers basically. Have you analyzed it and assuming it's a good deal?
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
7y
@Justin Hobbs Great to hear on the potential deal! A commercial bank loan would provide you with the best rates. However they're going to ask (1) what experience do you have in managing apartment buildings, (2) Do you have the down payment ? You didn't mention the asking price.
Beyond that they're doing to ask for rent rolls, deferred maintenance, all the numbers basically. Have you analyzed it and assuming it's a good deal?
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Justin,
What are the numbers? Have you thoroughly analyzed all the income and expenses? If its a really good deal then you can easily take it down if you have the cash to put down and credentials to qualify. If you do not have either of those or one then you are going to need a partner.
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
7y
Hi Justin,
A property that big that is stabilized would qualify for agency debt. Message me if you would like me to send over some PDFs on how to determine the best financing route.
Commercial Mortgage Broker · San Diego, CA · Member since 2009 · 70 posts · 69 votes
7y
Congrats on finding an investment.
Since the asset is stabilized, you will want to reach out to permanent lenders. I would start with local credit unions and banks since they can offer some of the lowest rates. Some credit unions will even offer the same pricing as banks without a prepayment premium.
I would also reach out to a Freddie Mac and Fannie Mae sellers to have them quote the loan as well.
Once you've gathered some quotes, compare them term-by-term and find the one that best matches your investment strategy.