Hello. I have a contract on a 14 unit. I’m putting 20% down. Has anyone done hard money loans on multi units? The goal is to BRR the property.
What is the current occupancy? If the property has less than 80% vacancy then hard money would be a good option. But if not then you should go and get conventional financing.
Thank you Antoine. Only one unit is vacant. The rents haven’t gone up in 20 years.
Sounds like you might be able to just get a commercial loan on it with 20% down, assuming you can close in 45 days. Would be a lot cheaper than hard money (5-6% interest), and you'd be able to employ the BRRRR strategy if it doesn't have prepayment penalties. But you'd have to do the rehab all out of your own pocket.
Thank you Nghi. I’ve never done hard money loans. Do they typically ask for down payments at all?
Thank you @Caleb
Okay thanks a lot Nghi
@Aja Yasir I just found your thread and was interested in how the deal turned out? Did you go conventional or HM? I’m getting ready to get back on my path of Multifamily investing!
The deal fell through @Camille
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