Help with ideas for big down payment.

[John Craig]

I have just started researching a 49 unit apartment complex for sale in my area.  Begin by running the numbers through bigger pockets rent calculations, the property seems to be able to cash flow nicely.  Now moving on to my concern, that is hindering me at the moment.  The property is listed for $1,500,000, I think it might be high asking price I value the property at $1,200,000.  My issue is the down payment for a commercial loan.  Can anybody give me suggestions on ways of getting a 25% down payment for the property.  I currently have 8 rentals and am closing a 4 unit in May, but this type of investment will be my first at this amount.  Thanks for any help.

[Hubert Washington]

@John Craig

Great job on finding a potential deal!

First, make sure it is truly a good deal. Hopefully your analysis looks something like this:

Income:

Gross Scheduled Rents
- Vacancy Allowance
- Concession/Bad Debt Allowance
+ Utility Reimbursement
+ Other Income
= Gross Income

Expenses:
Taxes
Insurance
Repairs & Maintenance
General/Admin
Property Management
Marketing
Utility
Contract Services
Payroll

Gross Income - Expense = NOI

NOI / CAP RATE = VALUE

Secondly, I would recommend partnering with an experienced commercial multifamily / apartment investor. If the numbers prove that it is a great opportunity, you can work to acquire private funding for the downpayment.

Good Luck!

THINK BIG...THINK BIGGER...THINK MASSIVELY!