All Forum Posts by: Caroline Jaloma

You are right 4 units and below are normal residential.

Above that you are in commercial realm. You can go to any bank for that but talk to the commercial lending folks there. Just know their rates will likely be higher than a community bank.

I do large mfh over 1M loan size to get non recourse Fannie Mae financing.

@Caroline Jaloma ... Just like most questions ... it depends.

1. Are you planning to renovate, rebrand and reposition right away? You may want it just semi-empty ... so you renovate the ones that go empty, raise the rent and put it back on the market. I.

2. Are you planning to get paid right away? Buy it full and start collecting the money from day 1.

I would always prefer to buy it full. Gives me time to put in place a strategy, while getting paid.

As a private lender, I wouldn't touch that deal. High price point is one thing, unless you have 10+ deals under your belt and a couple at that price range. Secondly you are pretty close to 75% ARV right there, so that is going to limit the rehab I would fund as well.

I agree and with @Nghi Le I would also add they tend to want to see experienced investors on deals with that high of a price point .. at least a few deals under your belt

It's going to be hard to find a lender that finances at the auction.  The other hard part is down payment on such a high price point.  Most hard money lenders want around 20% down.

Have you thought about approaching the sellers directly and offering to buy the property before it hits the auction?  You'll have more financing options there.  This might be a taboo in your state (I know in mine it is), so definitely check your local laws.

That's interesting. From what I have been told you would need to take it out of the trust to get financing with most conventional lenders. But, with conventional lenders it's probably equally hard to get funding in an LLC. Are you sure they didn't say pull it out of the trust, do the financing and then put in an LLC which offers the asset protection a trust doesn't?