10% Down on Multifamily

[Elise Ras]

Hello,

Does anyone know of a local lender or credit union in the Kansas City, MO area that would be amenable to 10% down on a multifamily investment property?

Thank you for the help.

[Sam Yin]

@Elise Ras

This depends on how big the property is, how much it generates, and you.

There are plenty of 10% multifamily loans out there... bridge loans with higher interest rates. The question is can you qualify, how confident are you with the investment, and is it worth the cost/risk?

I just got approved for one a few weeks ago. 10% down payment for a $7.8M loan at 9.5% for 18 months. It cost me 2.5 points. This is a 64 unit that will just be above break even at COE. If all goes well, immediately refi to traditional agency loan in a few months at 5.5% or less... costing at least another point. That's the cost of doing business.

So depending on how much the the multifamily will net you, there are plenty of funding out there. You just need to make sure you are not losing money and have exit strategies if it goes sideways.