Advice for high LTV financing of multifamily property
Hello,
I have finally found a bigger multifamily property that I like: 50ish units in a rural but very stable market, not a warzone at all, strong rents, and at around 2 million USD, a cap rate approaching 10%.
Now comes the question of financing and the amount of cash I need to bring into this deal. I have a commercial lender that will finance at 80% LTC for a rate below 5%, which is not bad, but I was wondering if anyone can give advice on how to do the deal with less cash out of pocket? Are there commercial lenders out there that will go up to 90% LTC? Or lenders that will do LTV instead of LTC (which would probably also help since it will likely appraise higher)?
Owner financing seems unlikely, but if I were to somehow convince the owner to finance a small amount, are there commercial lenders out there that will allow this as a second? (The ones I spoke to don't)
Any advice from experienced multifamily investors about how to package it in order to reduce the amount of cash required would be appreciated.
Jean