Rental Property Investor · Atlanta, GA · Member since 2018 · 43 posts · 20 votes
We own a 6 Unit Multi-family in Atlanta and would appreciate any recommendation for Lenders who will borrow at least 75% of the appraised value. We have about 50% loan and 50% cash currently invested in the purchase and rehab and we have succeeded to get it fully occupied. Our goal is to do the BRRRR strategy or at least get back the cash for now, while still making a decent cash flow. We're currently speaking to 2 out-of-state lenders who are both offering a 5/1 and 7/1 ARM amortized over 30 yrs, 3 points and averaging about 6 1/2% interest rates. I would like to know your thoughts on these terms and whether anyone can recommend any lenders (preferably local) that would be best for our strategy who offer good terms and can borrow on a multi-family in the Atlanta Market.
Try reaching out to your local community banks. I do BRRRR with some of my 5plus unit deals and get 5.5-5.75% for 20 yrs with balloon in 5. I think my last deal I paid only half a point.
Local banks who do portfolio loans will give better terms as they want to lend money.
Have you calculated using your sub-market cap rate to figure out what value an appraiser would give using your NOI? Have you done DCR to make sure the amount you refi into will still produce good ratios for banks to feel comfortable in doing this deal?
I wish I could give you a direct referral but here in Texas local banks are so much better to work with then out of state lender. Just my opinion.
Try reaching out to your local community banks. I do BRRRR with some of my 5plus unit deals and get 5.5-5.75% for 20 yrs with balloon in 5. I think my last deal I paid only half a point.
Local banks who do portfolio loans will give better terms as they want to lend money.
Have you calculated using your sub-market cap rate to figure out what value an appraiser would give using your NOI? Have you done DCR to make sure the amount you refi into will still produce good ratios for banks to feel comfortable in doing this deal?
I wish I could give you a direct referral but here in Texas local banks are so much better to work with then out of state lender. Just my opinion.
I appreciate your response @Luciano A. I did the cap rate calculations but not sure how that will affect an appraisal as appraised values are all over the place. I have just now done the DCR after you mentioned and it seems to be in a good position as well. I will definitely look into more local banks before making a decision. I really appreciate your feedback.