Is 10% Down With Hard Money on Apartment Possible?

Question

Hi all,

Just curious has anyone recently pulled off a hard money loan with 10% down on a comemercial apartment (9 units)

Is that possible?  I know it is possible for flips but this is a different situation.

Thanks!

Al M. · Answer

Roughly how much are you looking to borrow? Thanks.

Deric Dotson · Answer

Yes, there are some lenders that will do 2nds is seller financing possible on your deal also look for Gap funders.

Tariq B. · Answer

@Nghi Le I tried the 2 position option with the seller but no dice. Yes I do have experience over 5 years 10+ deals.

@Bob Green it would be a turnkey.

@JJ Bliss would other credits only go towards closing costs?

Bob Green · Answer

Is this for a turn-key property or require rehab?

JJ Bliss · Answer

If there is a value add play then it can be possible but another option may be upping your purchase price a bit and asking for a larger seller credit to offset cash needed to close.  Many lenders won't let you take more than 5% of the purchase price in a credit but with that credit plus taxes, rents, other credits you could come in close to only 10% down.

Nghi Le · Answer

Yes, it is possible, but usually done with 2nds, either from a private lender or owner carry.  Have to find a hard money lender that will allow 2nds too.

Do you have any experience with real estate investing?  If not, it might be hard to get that commercial loan.

Antoine Martel · Answer

Its not likely. But it is possible. Call as many lenders as you can until you find the right one who trusts the deal and the numbers.