100% vacant multifamily rehab

Amarillo, Texas
Private Lending & Conventional Mortgage Advice
1yFollow

100% vacant multifamily rehab

Rebecca Malicoat
Member since 2024 · 9 posts · 4 votes

I have a client that has 2 multifamily properties that are in Amarillo, Tx.  Both were bought with cash and require significant rehab.  They are also completely vacant and in very undesirable neighborhoods with boarded up houses next to them.  I have had lenders interested until they look at Google maps and see the surrounding area.  Is this just a no-go in terms of getting a loan or are there lenders that are willing to lend on these types of properties?

1Reply
25 views

Most Popular Reply

AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 652 posts · 315 votes
1y

Hey Rebecca,

How many units are they? Shouldn't be too much of an issue to find funding if they are 2-4 units. 5-8 unit rehab deals are trickier, but anything running at or above 10 units definitely becomes trickier, especially in 'undesirable' areas and depending on the specifics of the financials.

Is this their first time taking on a project like this as well?

[email protected]417-427-2612
1Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Rebecca Malicoat:

    I have a client that has 2 multifamily properties that are in Amarillo, Tx.  Both were bought with cash and require significant rehab.  They are also completely vacant and in very undesirable neighborhoods with boarded up houses next to them.  I have had lenders interested until they look at Google maps and see the surrounding area.  Is this just a no-go in terms of getting a loan or are there lenders that are willing to lend on these types of properties?

    Hi @Rebecca Malicoat, welcome to the BP Forum! I have CFO clients that have properties in similar areas and have had no issues obtaining financing. The key is the ultimate post rehab value and rents. Would you mind providing some numbers to go along with your post? Purchase prices, rehab costs (time to complete rehab), and ARVs. If they are going keep the properties, what would the rents be?

    [email protected]
    0Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 652 posts · 315 votes
    1y

    Hey Rebecca,

    How many units are they? Shouldn't be too much of an issue to find funding if they are 2-4 units. 5-8 unit rehab deals are trickier, but anything running at or above 10 units definitely becomes trickier, especially in 'undesirable' areas and depending on the specifics of the financials.

    Is this their first time taking on a project like this as well?

    [email protected]417-427-2612
    1Reply
  • Rebecca Malicoat
    OP
    Member since 2024 · 9 posts · 4 votes
    1y

    Unfortunately, they are all over 10 Units.  The borrowers have extensive experience with smaller properties, but just recently got into the over 10 unit MF properties.

    1Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      1y
      Quote from @Rebecca Malicoat:

      Unfortunately, they are all over 10 Units.  The borrowers have extensive experience with smaller properties, but just recently got into the over 10 unit MF properties.

       @Rebecca Malicoat By any chance, have you tried contacting any CRA-focused lenders (banks or credit unions) in Amarillo about these properties?

      [email protected]
      0Reply
  • Orlando De Los Santos
    Lender · NY · Member since 2025 · 16 posts · 3 votes
    1y

    we might be able to entertain this deal. 

    0Reply
  • Brandon Croucier
    Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
    1y

    What price point did they acquire the properties?
    When did they acquire the properties?

    How much work needs to be done? ($ Figure)

    What is the ARV?
    What is the exit stratedgy?

    0Reply
  • Marc Walowitz
    Lender · CT · Member since 2023 · 21 posts · 8 votes
    1y
    Quote from @Rebecca Malicoat:

    I have a client that has 2 multifamily properties that are in Amarillo, Tx.  Both were bought with cash and require significant rehab.  They are also completely vacant and in very undesirable neighborhoods with boarded up houses next to them.  I have had lenders interested until they look at Google maps and see the surrounding area.  Is this just a no-go in terms of getting a loan or are there lenders that are willing to lend on these types of properties?

    Hi Rebecca, are you still seeking funding? Yes, tough area, but fundable. 
    Please let me know if you would like to connect, Marc
    0Reply
  • Ben Guttman
    Specialist · Baltimore, MD · Member since 2017 · 418 posts · 126 votes
    1y
    Quote from @Rebecca Malicoat:

    I have a client that has 2 multifamily properties that are in Amarillo, Tx.  Both were bought with cash and require significant rehab.  They are also completely vacant and in very undesirable neighborhoods with boarded up houses next to them.  I have had lenders interested until they look at Google maps and see the surrounding area.  Is this just a no-go in terms of getting a loan or are there lenders that are willing to lend on these types of properties?


     Are they up and coming neighborhoods that are being redeveloped or is nothing changing?

    0Reply
  • Steven LeeBusiness Member
    Lender · 18021 Norwalk Blvd Suite 209. Artesia, CA 90701 · Member since 2015 · 486 posts · 42 votes
    1y

    Rebecca,

    If the property has 0 balance and the property value is there. I can get this funded up to 65% LTV with no appraisal. This would be funded with one of our private investors.

    [email protected]800-369-7009
    RCD Capital4.826 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free