Shopping for a multi-family loan

9 Replies

For my 800K loan, I have the downpayment (unless I can find a lower or no downpayment way to make this happen), I also have my local banks that I work with. Do any of you have a recommendation for other places to look for financing? I'm consider a broker but I don't have one yet. 

Are you going to be the sole owner? NO General Partnership or Syndication?

You wont find banks that will do this. There are lenders though and the fact that you have the 20% down helps a lot. Some will require experience or bringing someone into a partnership with it. Some will require you to provide information on how the property will be managed and by whom.

Also factor in your acquisition, value add propositions, stabilization and eventual exit strategy. A lot of factors. 

@Nate Marshall are you saying that banks won’t lend to me because I’m buying this as the sole owner? Is it very different from a duplex? It’s only 800k...

@Curt Altarac I don't think that's what he was suggesting, or if he was he probably misunderstood your question. It sounds like you have everything in place I would work with your local banks that you say you already have an established relationship with. Other than you could use a mortgage broker (they typically charge 1%), the only other route would be to get hard money which I'm not sure there is a need for here, assuming you can get the conventional loan in time.

@Curt Altarac How many units is the property?

@Curt Altarac

Is this going to be your primary residence? Is the $800k purchase price above conforming limits for the area you are purchasing in? I am aware of a low down payment portfolio option, but it requires the loan to be above conforming limits.

@Curt Altarac

For some reason I read it as a duplex. This program that I mentioned is for residential 1-4 units. 

An 8 unit will require commercial financing. 

Originally posted by @Curt Altarac :

For my 800K loan, I have the downpayment (unless I can find a lower or no downpayment way to make this happen), I also have my local banks that I work with. Do any of you have a recommendation for other places to look for financing? I'm consider a broker but I don't have one yet. 

You say you have the down payment.  I'm hoping 25%.  Do you have reserves?  Closing costs?  Is the property stabilized or does it need renovation?  What's the occupancy percentage?

 

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