We (me and my partners) just got an contract on a 40 unit multifamily in Atlanta area.
The purchase price-599K, rehab est 100K, closing at the 01.30.14
We will provide rent rolls and the rehab estimats.
I am looking for finance options for it.
We are investors from outside of the US, that means that we dont have SSN or credit score.
Until now we allways purchase with cash money.
Please let me know what my options are?
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You don't give us enough information about this deal or what your exit strategy is. You want to flip or build a portfolio? To get the best response here, you should present as many facts about your deal as you can. Your question is too vague.
Look at your question as if you were a lender looking at the deal. You don't have to give the address, just the info necessary to make a financial decision.
It will be difficult for you to fund this deal, but not impossible. The devil is in the detail. You're in the right place to get a response and best of luck with it.
welcome to the site.
@Lior Shaashoua You should be able to get a commercial loan for a property that size. Have you tried?
@Lior Shaashoua I assume from this post you're looking to finance the deal in lieu of purchasing w/ cash. One of you options is to bring on a US partner w/ an EIN or SSN that likes your deal & would then take on the role of financing it or taking the lead in getting the deal financed.
@Lior Shaashoua hard money lenders are always an option as many will lend to out of country borrowers (no credit score, no SSN) however the bigger issue is exit strategy. HMLs are shorter term lenders so refinance on a project like this is probable and that is the main issue I see because as you've already found there is a problem with obtaining financing being a non-US citizen.
I agree bringing on a US citizen as a partner could be an option.
This is a tricky one.
Thanks, for all the replys :)
This deal that I got an contract on, our strategy we goes like that-
will buy it and hold it for 1 or 2 years. after the property will make the target cash flow that we want, we will sale it to new company that we and our investors in our country will open. we will hold it for 4-5 years, and then sale it.
So we will need 2 loans,
1. to buy it and hold it for 1-2 years (probably hard money). as I wrote, within the 1-2 years we will sale to our new company, and we will return the first loan.
2. then we will need the secound loan for 4-5 years, until the sale, (our last sale regarding this property).
As I mentioned, we did that, we have expireance in small multifamilies (up to 20 units), but its was all cash purchases, so we dont know much about financing.
Please let me know, if we can get financing at that strategy. remember that we dont have SSN or C.S.
what rates should we expect?
We have less then 20 days D.D AND The closing of this deal is at the 01.30.15, can it work within that time?
Thanks a lot
Welcome to BP @Lior Shaashoua
As a broker in the types of deals you mentioned, the hard money loan should be do-able within your timeframe. If I were you guys, I'd expect up to 65% LTV, maybe 60% depending on the property, 10-12% I/O, a few pts. Do you have foreign credit? I know sometimes that will be looked at depending on lender. There might be some stipulations (such as impounding some of the monthly payments in an escrow account), but you should be able to get a loan and timeframe should be fine.
For example, we helped some foreign clients close on a 10+ unit in Atlanta earlier this year. 65 LTV, 5 pts, 10% I/O, 3 year term, no upfront fees, 2 week close..clients had looked for financing for 4+ months.
Bringing on a partner could also be an option, but sometimes that creates more headaches than it helps, especially if you can get the financing without it.
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