Financing 25 unit complex

West Chester, PA · Member since 2013 · 22 posts · 5 votes

I found a 25 unit property in Louisiana that cash flows well but it needs some updating. Asking 1.2mil. I can cover 20% down but is anyone aware of a product/lender where I can put down 15% or 10%? I would prefer to put less down and start cleaning up this property right away. I don’t have all the answered but I’m here and open to ideas……

Owner financing is not an option. I don’t own any like properties but have been a landlord for the last 10years. My credit hovers around 800

monthy income is 16k

P&I - TBD

Monthly expenses(taxes, trash, insurance ect.) estimated to be 1700.

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Erik EstradaBusiness Member

Lender · Member since 2022 · 6k+ posts · 1k+ votes

Quote from @David Wasiloski:

Owner financing is not an option. I don’t own any like properties but have been a landlord for the last 10years. My credit hovers around 800

monthy income is 16k

P&I - TBD

Monthly expenses(taxes, trash, insurance ect.) estimated to be 1700.

This is possible if the seller is wiling to carry the remaining 15-20%. Most commercial lenders will cut you off at 70% LTV for long term financing.

You can also get a higher leverage on a bridge loan by cross collateralizing with your other investment properties.

[email protected]818-269-7983

LuxePrivate Investments LLC 572 Reviews

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @David Wasiloski:

I found a 25 unit property in Louisiana that cash flows well but it needs some updating. Asking 1.2mil. I can cover 20% down but is anyone aware of a product/lender where I can put down 15% or 10%? I would prefer to put less down and start cleaning up this property right away. I don’t have all the answered but I’m here and open to ideas……
Owner financing is not an option. I don’t own any like properties but have been a landlord for the last 10years. My credit hovers around 800
monthy income is 16k
P&I - TBD
Monthly expenses(taxes, trash, insurance ect.) estimated to be 1700.

This is possible if the seller is wiling to carry the remaining 15-20%. Most commercial lenders will cut you off at 70% LTV for long term financing.
You can also get a higher leverage on a bridge loan by cross collateralizing with your other investment properties.
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
1 Reply
Jason BottPro Member
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
3y
@David Wasiloski you will want to firm up the insurance pricing. Chances are your rate will be 25%-50% higher than the historical expense or estimate.
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David Wasiloski
OP
West Chester, PA · Member since 2013 · 22 posts · 5 votes
3y
I got a new quote
1 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @David Wasiloski:

I found a 25 unit property in Louisiana that cash flows well but it needs some updating. Asking 1.2mil. I can cover 20% down but is anyone aware of a product/lender where I can put down 15% or 10%? I would prefer to put less down and start cleaning up this property right away. I don’t have all the answered but I’m here and open to ideas……
Owner financing is not an option. I don’t own any like properties but have been a landlord for the last 10years. My credit hovers around 800
monthy income is 16k
P&I - TBD
Monthly expenses(taxes, trash, insurance ect.) estimated to be 1700.

You could look for a hard money lender then when it is finished you can refinance out of it. Often hard money loans have a construction cost you can take out as well.
1 Reply
David Wasiloski
OP
West Chester, PA · Member since 2013 · 22 posts · 5 votes
3y
Can your recommend any?
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Givo Aghasi
Lender · Los Angeles, CA · Member since 2022 · 238 posts · 73 votes
3y
@David Wasiloski It is possible if the seller is willing to finance the remaining. Most lenders will go up to 75% LTV for long term financing and 90% CLTV. You still need to make sure the property can DSCR.
1 Reply
Andres Murillo
Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
3y
Gotta figure out the property's DSCR rate first. Your downpayment will be entirely based on the DSCR for the property. Most lenders have specific DSCR metrics that they advertise - check the property's financials against that DSCR to figure out the down payment you'll need.
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Nick BelskyBusiness Member
Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
3y
@David Wasiloski
Just like with residential 1-4 Unit, there are fix and flip loans for multi-family as well. I don't believe I've seen any go up to 90LTC recently, but 85LTC is easy enough to find if you have enough experience, the numbers allow it, and a good proforma showing a solid DSCR at exit; even if you plan to sell. There are even a few 30yr Fixed Rate lenders starting to poke their heads out of the ground as of recent, so perm financing is getting easier to find as well. I've been running into a lot of deals lately where the borrower is wanting a certain LTV/LTC but their numbers simply don't support it. The reason they get 70-75LTV/LTC is because there's not enough value add bang for the buck. So the penalty is a lower LTV/LTC...
Happy to look at this one closer for you to see if anyone in my network can be a better fit.
Cheers!
[email protected]
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Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
3y
Quote from @Steven Foster Wilson:

Quote from @David Wasiloski:

I found a 25 unit property in Louisiana that cash flows well but it needs some updating. Asking 1.2mil. I can cover 20% down but is anyone aware of a product/lender where I can put down 15% or 10%? I would prefer to put less down and start cleaning up this property right away. I don’t have all the answered but I’m here and open to ideas……

Owner financing is not an option. I don’t own any like properties but have been a landlord for the last 10years. My credit hovers around 800

monthy income is 16k

P&I - TBD

Monthly expenses(taxes, trash, insurance ect.) estimated to be 1700.

You could look for a hard money lender then when it is finished you can refinance out of it. Often hard money loans have a construction cost you can take out as well.

I agree with Steven. Hard-money loan is always an option. I have done this in the past and it has proved to be succesful.
[email protected]614-802-5698
ReafCo | Ahmed Group 530 Reviews
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David Wasiloski
OP
West Chester, PA · Member since 2013 · 22 posts · 5 votes
3y
So I think the fox and fill is really what I’m looking for. I’ll have some money on hand to start the renovations right away If I can do 85% down. Great advice here on BP
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David Wasiloski
OP
West Chester, PA · Member since 2013 · 22 posts · 5 votes
3y
So I think the fix and fill is really what I’m looking for. I’ll have some money on hand to start the renovations right away If I can do 85% down. Great advice here on BP
0 Reply
Mark Redmond
Realtor · Los Angeles, Tampa · Member since 2023 · 8 posts · 1 vote
3y
Hey David, dm'd you
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Simmy AhluwaliaPro Member
Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
3y
If you're still looking for a quote, 85% LTC on a bridge is the route to go, assuming both you and the asset qualify. Once you take down the asset, make some improvements, evict any that need it, raise rents, etc....then refinance into Agency debt.
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