We just sent over an LOI on a 27 residential package deal in Ohio. All houses are located in the same neighborhood, all leased, and cash-flowing at $21k a month. We have a property management company ready to start managing them as soon as we close.
The only question mark in this deal is the funding.
This is my first time to purchase something this large and I'm hoping to draw on the collective genius of BP.
What is the best way to fund this deal?
Thanks for your help
Broad question with alot of variables missing in order for any answers to be given. What is the price point for the project?
If you are seeking a commercial loan, you can bundle them all. You will need 25-30% down.
If you are looking to fund them individually, you can do this with a conventional lender for the first 10 properties. They MAY be able to do them simultaneously, or possible staggered a day or two part.
The lender should be able to use 75% of the rental income to help you qualify for the loan. You will most likely need 20-25% down for these too.
After 10 loans on your credit, the funding options narrow to commercial or hard money/private money.
I agree, there are too many missing variables.
Since you said it's a package deal, I'm assuming all or none go through. If that's the case, you could go with a rental portfolio loan. However, you didn't provide enough information regarding the properties to even see if the group would qualify.
If it's just a matter of closing all 27 properties at once, it can still be done. Especially, if you use a single lender. They will coordinate closings to be simultaneous.