Funding Options for Large Multifamily Property

[Ryan Mapes]

Seriously considering purchasing a 24 unit apartment complex in central Texas with a couple of other partners (GPs).  Not interested in running a syndication.  We'll need to fund the downpayment and renovation costs (~$1.2M).  I'm curious what sources/types of funding others are using for mid-sized multifamily properties.  What terms/rates are you seeing on each funding source?

[Greg Kasmer]

Ryan - Not sure of the total value of the loan, but if it's over $1M you can go ahead and look at agency debt (Fannie and Freddie) - assuming that your GP team has the net worth, liquidity, and reserve requirements for those loans. I've been mostly using credit unions and regional banks for multifamily lending and found about 4.0-4.25% on the interest rates over 25 year amortization with 5 year interest rate resets. I'm typically getting 75% LTV and some offer renovation funding as well up to 75%. Looks like your project does have some renovation, so it would be a good find if you have a credit union willing to give your team 75% of the renovation funding. Good Luck!