Rental Property Investor · Philadelphia, PA · Member since 2017 · 104 posts · 64 votes
Hey everyone looking to get a Debt quote on a 25 unit apartment building in Philadelphia, PA. I will have 30% to put down on the asset which range in the 3 million - 3.6 million range.
Any recommendations on any lenders that will do this loan.
Hey everyone looking to get a Debt quote on a 25 unit apartment building in Philadelphia, PA. I will have 30% to put down on the asset which range in the 3 million - 3.6 million range.
Any recommendations on any lenders that will do this loan.
Hey @James Nix. I assume you'll get similar questions from the forum but are you looking for a loan to buy the property (with or without rehab funds) or refinance it (with or without cash out)? Also, as someone that works for developers across the country that own similar types of properties, I expected that interested lenders will need to know your estimated credit score and the amount of development experience you have.
Also, since you're posting this on BP, I assume you're looking for quotes from Hard/Private money lenders rather than banks or credit unions, is this correct?
Hey everyone looking to get a Debt quote on a 25 unit apartment building in Philadelphia, PA. I will have 30% to put down on the asset which range in the 3 million - 3.6 million range.
Any recommendations on any lenders that will do this loan.
Hey @James Nix. I assume you'll get similar questions from the forum but are you looking for a loan to buy the property (with or without rehab funds) or refinance it (with or without cash out)? Also, as someone that works for developers across the country that own similar types of properties, I expected that interested lenders will need to know your estimated credit score and the amount of development experience you have.
Also, since you're posting this on BP, I assume you're looking for quotes from Hard/Private money lenders rather than banks or credit unions, is this correct?
Thank you for responding, I am looking to buy the property with rehab funds already also would be looking to be able to refinance out in 3-5 years.
This will not be all of my funds in this purchase. So will be looking for some guidance as to putting everything together far as the structure LLC etc with the funds coming from a few people.
Also didn't think personal credit score would be a major factor if I would be using a LLC with the funds for down payment or am I totally wrong about that?
Also just wanted to hear a few different opinions about how to go about this that’s why I posted it on BP so if you think Banks/Credit Unions is the way to go about this purchase please if you can give me tips on your experience with this?
Hey everyone looking to get a Debt quote on a 25 unit apartment building in Philadelphia, PA. I will have 30% to put down on the asset which range in the 3 million - 3.6 million range.
Any recommendations on any lenders that will do this loan.
Hey @James Nix. I assume you'll get similar questions from the forum but are you looking for a loan to buy the property (with or without rehab funds) or refinance it (with or without cash out)? Also, as someone that works for developers across the country that own similar types of properties, I expected that interested lenders will need to know your estimated credit score and the amount of development experience you have.
Also, since you're posting this on BP, I assume you're looking for quotes from Hard/Private money lenders rather than banks or credit unions, is this correct?
Thank you for responding, I am looking to buy the property with rehab funds already also would be looking to be able to refinance out in 3-5 years.
This will not be all of my funds in this purchase. So will be looking for some guidance as to putting everything together far as the structure LLC etc with the funds coming from a few people.
Also didn't think personal credit score would be a major factor if I would be using a LLC with the funds for down payment or am I totally wrong about that?
Also just wanted to hear a few different opinions about how to go about this that’s why I posted it on BP so if you think Banks/Credit Unions is the way to go about this purchase please if you can give me tips on your experience with this?
Hey @James Nix...I'm watching your long-lost cousin, Bo, play the Bills right now ;-)
With HMLs in my experience, the credit score is not a factor in approving the loan per se, but it can dictate the interest rate and fees (the higher the FICO, the lower the rate and fees) and max LTV (lower FICO, lower LTV).
What are the average current rents on the 25-unit property? How much rehab do you expect there to be? How long will the rehab take and what would the ARV and average rents be when the rehab is finished?
A local bank/credit union could be an option, but in my experience, the most rehab that is required, the less interested the banks/credit unions will be in lending (until the rehab is completed and the property is stabilized).
@Jaycee Greene the funny part is Bo is actually really good especially gonna be for the future for Denver lol.
So the average rents is $1300 on the 25 units. The property was renovated in 2015 but I haven’t been in the property yet to get a full scope of everything that’s going on to answer how much rehab would be needed yet.
This asset is 100% occupied & stabilized already but the loan is due soon & I talked to the broker and I was given indication that I could possibly trade at $120,000 door when it’s already a steal at the listing $140,000 a door in that location.
I know this could be hypothetical talk because I don't got the deal under contract at any price or even sent an LOI but I just wanted some help on getting the Debt lined up to know the steps. Because I am connected to the equity for the down payment on the loan.
@Jaycee Greene the funny part is Bo is actually really good especially gonna be for the future for Denver lol.
So the average rents is $1300 on the 25 units. The property was renovated in 2015 but I haven’t been in the property yet to get a full scope of everything that’s going on to answer how much rehab would be needed yet.
This asset is 100% occupied & stabilized already but the loan is due soon & I talked to the broker and I was given indication that I could possibly trade at $120,000 door when it’s already a steal at the listing $140,000 a door in that location.
I know this could be hypothetical talk because I don't got the deal under contract at any price or even sent an LOI but I just wanted some help on getting the Debt lined up to know the steps. Because I am connected to the equity for the down payment on the loan.
This does sounds like a great deal. How would you rate the neighborhood? A, B, C? If you have the equity already in place, even a local bank should be able to finance this (as long as they can do a loan over $2M to one borrower.