Apartment Complex Financing

7 Replies

Hello,

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.

Thanks,

Jack Harris

Medium sh   olus   pelican state realty   logo   finalJack Harris, Pelican State Realty | 985‑212‑2963

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.

Owen Dashner, ODD Properties, LLC | http://www.sellmyhouseinomahafast.com

you will need some cash from someplace.  

70% bank financing

20% seller financing

10% cash from you

@jack 

@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. 

Medium logo1Joe Fairless, Best Real Estate Investing Advice Ever | http://www.apartmentsyndication.com | Podcast Guest on Show #227

Hey guys!

Thanks for all the great responses.  I think I'm going to start a little smaller first.  That seems to be my best bet.

Medium sh   olus   pelican state realty   logo   finalJack Harris, Pelican State Realty | 985‑212‑2963

@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!

Good hunting.

Medium sig  3 Jeff Greenberg MBA, Synergetic Investment Group, LLC | [email protected] | 805.372.1799 | http://www.synergeticig.com | Podcast Guest on Show #115

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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