Hi, I'm looking at a 14 unit apartment. How much different is financing on something like this vs. Smaller multifamily or single family financing? I still have a lot of research to do on the property before I move forward but if it looks good I want to act fast.
Anything over 4 units is considered commercial, so you would be looking for a commercial lender, not a residential lender. As you probably already know, investor loans (whether residential or commercial) almost always require higher downpayments than owner-occupied loans. Expect 20-30%. Small commercial loans can be a bit tricky to find- there are fewer commercial lenders than residential and many of them don't want to bother with anything under 1 mil. I would start by calling smaller local banks and credit unions and ask if they do commercial loans of the size you are looking for. If you are starting looking into multis I strongly recommend reading Frank Gallinelli's books “Insider Secrets to Financing Your Real Estate Investments” and "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures”. Good luck!
Thanks a lot guys.
So if the seller is willing to carry 75% it shouldn't be too hard to get the bank to finance the other 25%
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