Structuring Creative Financing on 50-Unit Multifamily (KCMO)

[Maddy Morell]

I’m working with a seller in Kansas City, MO on a 50-unit multifamily (studio lofts, built 2021).
The seller is open to creative terms, including possibly redoing the existing loan in the buyer’s name or seller financing with a significant down payment and selling Off Market Only.

For those of you experienced with creative financing on larger multifamily:

• What’s the best way you’ve structured deals like this?
• Do you see more success with seller carry, master lease options, assumption of existing debt, or another structure?
• Anything specific to watch out for with lender approvals on a property this size?

Would love to hear how others have approached this, and what creative strategies have worked for you in larger multifamily vs. smaller deals! Thanks!

– Maddy

Licensed Agent, KS & MO | The Bridge Team / 1st Class Real Estate KC

Equal Housing Opportunity

[Nick Belsky]

@Maddy Morell

What's keeping this from going with agency financing? If you are considering 36% down and it's class A, agency pricing is phenomenal right now... We are pricing similar sized deals at 80LTV in the 5's... I don't see where you mention if its stabilized or not. We'd need a DSCR of at least 1.25 using NOI and the sponsor must meet liquidity and experience requirements. But if you've got 36% to put down on seller carry, that would more than cover 20-25% down and reserve requirements.

Seems like there is a straight forward option here unless there is something I am missing...

Cheers!