All Forum Posts by: Account Closed

Hi Bilal,

It depends on what we are talking about here.

Smaller MF you are looking at local banks that have vanilla finance and generally see things only one way.

When you get into larger properties that have scale it is less about the operator that owns it because large PM companies can be put into place with a solid track record and history to manage it. The lenders will sometimes feel comfortable with a strong PM in place with experience to guide the operator.

If you do not have a job but have reserves non-bank lenders could still look favorably on that. If you have 1.5 million for instance and buy a 3 million property with 25% down then you still have plenty of reserves. If the down payment and closing takes all of your money and you have little reserves and are depending on the cash flow of the property to qualify you that is a very tough sell to the lender. They want to know you have some reserves in case of a "liquidity event". This is something unforseen that happens with a property and you need a fast capital injection so it does not become unstabilized.

So there is no absolute answer to what you are asking. Property and borrower are underwritten on a case by case basis.