Getting Secondary Mortgage Loans

6 Replies

Wanted some advice getting financing larger residential property purchases for buy and hold; 2-4 million valued properties. Likely that I would have to put put down some good amount, exploring options to get secondary financing or other legit options.

How does this process work? If somebody expert could help please.

Originally posted by @Andrew Postell :

@Manik Zaman are these 5+ unit properties?

 I would expect 25-50 units

My suggestion would be to take a 1st mortgage with Fannie Mae or Freddie Mac small balance commercial loan. They start at 1 million and go to 6 million. The down payment would be 20%. They have the best terms of virtually any lender in that space. So on a 2-4 million purchase, your down would be 400-800,000. If you don't have that much cash, consider syndicating to get the cash into the deal that you need. If its a good enough deal, you can find syndication money. Look in the market place on here. Market your deal to get the partners that you need. 

Originally posted by @Kevin R.:

My suggestion would be to take a 1st mortgage with Fannie Mae or Freddie Mac small balance commercial loan. They start at 1 million and go to 6 million. The down payment would be 20%. They have the best terms of virtually any lender in that space. So on a 2-4 million purchase, your down would be 400-800,000. If you don't have that much cash, consider syndicating to get the cash into the deal that you need. If its a good enough deal, you can find syndication money. Look in the market place on here. Market your deal to get the partners that you need. 

Appreciate the advice Kevin!

If I can put in 25% I know I would qualify for the Fannie Mae or Freddie Mac. I probably not be able to put in 25%, but I can put in good amount. 

Safety part of the syndication concerns me.

Which kind of professionals would advice on these sort of financing aspects? I could possibly get some local professional help to educate myself first.

@Manik Zaman ok, thanks for clarifying that. I was asking because Bigger Pockets has an entire forum on multi-family and an entire forum on commercial.  You might get more responses to this post in those sections.  Thanks!

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