All Forum Posts by: Richard Copeland

Justin: You can bring in a partner on the deal for the 20%.  Most lenders will ask about the capital stack structure.  Most conventional lenders will not provide you the 80% if you borrow the 20% to put down.  They typically want you to have some skin in the game.  You could possibly structure the deal with a mezz piece to cover most of the 20%, but you will typically have to contribute at least 5% of the equity.  If this is your first deal and you don't have a strong balance sheet, that structure may pose a problem.  You can always go private lender for the whole deal and refinance in 12 to 24 months. 

Nick:  There are a couple I know of and attend, Lifestyles Unlimited and Commercial Real Estate Meet-up with Andy Davies.

There are several options available to you. However, what is your goal or vision for the property?  Do you want to develop the property or are do you just have an idea looking to make a quick buck?  If you want to develop the property, then you need to get a better understanding of the building and zoning requirements  or hire someone that does.  If you are for the quick buck, identify builders currently in the area already building an approach them or a builder that has a similar product but not currently in the immediate area.

Richard: I own a commercial mortgage brokerage firm.  We arrange financing for commercial and multifamily real estate across the country.  Quads are considered residential and not multifamily.  Multifamily is 5 or more units.  For residential properties, if you have a good existing relationship with your local bank or credit union is your best bet for terms in most cases.

Go ask the building and zoning department.  Also, read the zoning law and find out what it states exactly related to your situation.  It may have a provision for you already.

Christopher:  I own a debt and equity firm that secures financing for commercial and multifamily real estate nationwide.  Send me a PM, I would be glad to discuss any deals that you have.

Calvin:  I own a debt and equity firm that secures financing for commercial and multifamily real estate nationwide.  The easiest thing to do would be got to your local bank and ask for its commercial real estate lender.  Tell them what you want to do.  Assuming the other properties you own have enough equity, they should jump on it.  

My above post assumes a stabilized property, which is able to service its debt at 1.25x or greater.

Salem: I own a debt and equity firm that secures financing for commercial and multifamily real estate nationwide.  What type of property have you identified?  Send me a PM to discuss.

Jibran:  If these properties are in low-income neighborhoods or areas that need significant redevelopment, check with the City or the Economic Development board for the area.  There may be funds available to you to help revitalize the area and provide affordable housing.  Also, if you have a decent balance sheet, you may want to establish a line a credit with a bank to to fund faster and avoid the appraisal and loan funding requirements.  Also, banks must demonstrate a certain amount of CRA lending.  Check with the banks and see if your deals will qualify and help them meet that requirement.