I'm looking into a 30 unit apartment complex listed at $1,700,000. I've dealt mainly with single family homes for the past few years, so this would be something fairly new to me. I would like some input on getting financed for this type of deal from bigger pockets members before I start contacting different people who I know in the industry.
I'm not sure if I can even pursue this type of deal, so any help and/or info would be greatly appreciated.
It would take more information about your situation/finances to be able to give meaningful advice. For instance, do you have capital to fund a downpayment? Reserves? An existing business entity with a proven track record of cashflow? Several years of real estate experience? Any free and clear property to use as collateral (or other types of assets to collateralize)? Those are just a few things that would be top of mind for potential lenders, so knowing some of the answers would be helpful in order to give any advice.
you will need some cash from someplace.
70% bank financing
20% seller financing
10% cash from you
@Jack Harris congrats on finding a 30-unit. The financing question depends on where you get the financing from and how you structure the deal. Generally speaking, you'll need 25% down plus closing costs plus liquid reserves after closing. Plus, you'll want to take into account any money needed to put into the property to increase value (if that's your strategy). I'd speak to a mortgage broker and if you need some recs I'd be happy to send you some if you message me.
@Jack Harris let us know what specific questions you have. Like others have said it depends on your situation, the specific property, market, goals, ect.
This is what I do so ask away, im happy to reply here so all can learn.
Thanks for all the great responses. I think I'm going to start a little smaller first. That seems to be my best bet.
@Jack Harris If the 30 unit is a good deal, but over your head, you may want to partner with someone with experience, and net worth, if that is what you are lacking.
The first step is to make sure of the value of the property. Learn how to do the numbers otherwise you will never know if you have a deal or a dog!
Hey guys, I am wanting to find more information and partner up with some investors that have apartment complex experience. I am looking in TN, TX, NV and CA. I would also consider AR if it is near the University. Any ideas or referrals for people I should connect with?
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