I am exploring the possibility of working with private lenders for commercial size (5 - 100 unit) multi-unit residential / mixed use (high % residential) properties. Deals I negotiate are on properties that are performing well to begin with but could use some degree of turn around and/or value add attention. Typical target hold timelines are 1 - 5 years depending upon the property, the actions needed, the returns, and max term lenders will allow. Have any of you gotten private funding for these types of deals? If so, I would like to find out what types of terms you have gotten, including LTV ratio, deal size you have gotten financed, amortization term, etc. Any other experience, advice, or contacts would be appreciated.
Generally private lenders arent going to loan so much at one time to one person. Usually on bigger deals, in my experience, private money is pooled together for the equity side in a syndixation (usually a 75/25 split more or less). For underperforming properties you can often get a bridge loan. We only have one major private loan on a big apartment that we got as a bridge loan, other than a few small 2nds, I think its 9%
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