Multi-family financing

[Brenda Whittaker]

In the process of analyzing a 4-plex, according to the Bigger Pockets guide to analyzing deals.   How can I factor in financing costs if I dont have financing set up and to set up financing, can someone without personal credentials get a 4-plex financed and if so, what is the average cost, as in % rate and closing costs >?  Just for educations' sake.  I need to know what numbers to put into my practice analysis, though it is on an actual 4-plex for sale that I would love to get in to.  And who generally finances small complex's, private?  Conventional?  Commercial lenders?  Thanks for your thoughts, everyone.

[Denny Robert]

Brenda,

I would urge you to educate yourself in the AZ market. You're making some massive generalizations which just aren't true. There are deals to be found here, and in the last 6 years there were some ridiculously great deals, including multifamily. AZREIA is a good place to start, as well as Bigger Pockets.

Also, there are still unique financing opportunities. Not every property will offer them, but they are out there. I bought a fixer upper four plex owner financed with 12% down in Tempe. I also have a single family for sale in Tempe that will sell "subject to" the existing loan.

We all have regrets. I wish I wouldn't have sold my first car, among other things. It would be worth 10x what I sold it for if I kept it. The great thing about today is it's another opportunity.

Best,

Denny