I am working to purchase a 13-unit apartment building in Upstate New York and wondering if anyone here has a lender you would suggest working with for the deal. This is an in-family purchase, buying it from my cousins, formerly owned by my uncle who passed. It is fully occupied and will cash flow at the price I have negotiated (including all expenses and worst case scenarios).
If you have a lender you would recommend based on experience, please feel free to share.
If you are a lender, I am open to hearing from you as well, just be transparent that you are a lender.
For reference, I am an investor with 10 years of buy and hold experience and 12 doors. I am also a licensed realtor in 2 states.
Thank you in advance for any advice and suggestions!
Pierre, this is one I would be interested in looking at. Full disclosure, I am a mortgage broker.
At 13 units you're firmly in commercial multifamily financing rather than residential investment financing, and the fact that it's fully occupied and already cash flows at your negotiated purchase price is a good place to start.
The family purchase is something I would want to understand a little better before recommending a specific lender. It's not necessarily a problem, but the lender is going to want to understand the relationship between buyer and seller, how the purchase price was established, current value, and exactly how the transaction is being structured.
Lument is actually one of the places I would consider for a deal like this, depending on the numbers. They have small-balance multifamily programs specifically for 5+ unit properties, so 13 units itself isn't an issue.
Before deciding where I would send it, I'd want to know the purchase price, requested loan amount, current gross rents, trailing 12-month operating expenses and NOI, property taxes, insurance, approximate current value, and whether there is any deferred maintenance or renovation planned after closing.
I'd also want to know how much cash you're planning to put into the transaction versus whether part of the negotiated family purchase price is effectively creating equity for you at closing.
With 10 years of investment experience and 12 existing doors, you've also got a much better borrower story than somebody walking into their first multifamily acquisition.
I wouldn't shop this simply by asking who has the lowest multifamily rate. I'd package the property and the transaction first, calculate the actual NOI and DSCR, figure out the leverage you're looking for, and then determine which lending program fits it. If you need me to help you put the package together, I am happy to help you out.
If you want to post the purchase price, approximate value, current annual gross income, and annual operating expenses, I can probably give you a pretty good idea of which direction I would take it.
Lender/broker here, so full transparency! We’re LFG Lending and specialize in investor financing.
For a 13-unit, I’d shop this as a commercial multifamily deal and compare the actual structure, not just the quoted rate. A few things I’d specifically ask each lender:
• What DSCR are they requiring, and are they underwriting off the current rent roll or market rents after appraisal? • What LTV/LTC will they allow, and how are they treating the below-market/in-family purchase if there's built-in equity? • Is there a prepayment penalty or step-down, and what does that look like? • Is the loan recourse or non-recourse? • What amortization are they offering? A slightly higher rate with 30-year amortization can sometimes cash flow better than a lower rate amortized over 20–25 years. • Are there seasoning requirements if you plan to refinance later? • What reserves, liquidity, and net-worth requirements will they want to see?
Also, because this is an in-family transaction, I’d make sure your lender knows that upfront. If you’re buying below market value, there may be meaningful equity in the deal, but lenders can treat that equity differently when determining leverage.
I’d absolutely get a quote from a local/community bank, especially for a stabilized property like this, but I’d compare it against other commercial multifamily options before committing. Banks can have great pricing, while other lenders may offer better leverage, amortization, or flexibility.
Happy to take a look at the numbers as well if you want another option to compare. Either way, I’d get 2–3 structures in front of you before choosing. On 13 units, the terms beyond the interest rate can make a BIG difference over the life of the loan.
Hi Pierre, I work on investor financing (DSCR, cash-out refi, portfolio, and small-balance commercial options). Happy to talk through what's realistic on the multifamily side for a property that size. Feel free to message me or send a connection request and we can go from there. - Rushi
@Pierre Eade — if you need any help, I’m here for you. I own some properties myself and also run a lending business, so we can help you navigate your options and figure out the best course of action based on your specific situation.
Think of us as a real estate concierge — we can help you look at the bigger picture, talk through your options, and point you in the right direction.
