Want to put 10% down On Mixed Use 9 unit in Milwaukee

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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
1y

@Ruben Goodbear Anders  You mentioned:  even with a higher downpayment, and contacting over 30 lenders, nothing - what are they saying exactly on the reason for no interest in the project?

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  • Jason Taken
    Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    1y
    Quote from @Ruben Goodbear Anders:

    Hello,

    I’m under contract on a 9 unit mixed use in west allis Wisconsin. Was wondering who you can lend on this and what a term sheet would look like.

    Purchase, 350. Rehab estimated 135. ARV 700. 8 residential units 1 commercial.

    Thank you.


     Most, if not all, lenders will de-lever on this type of asset. 10% down is very unlikely. Your best bet for pricing is probably a local credit union. Make sure to have your ducks in a row though -- strong SREO, strong property financials, strong track record on this asset class.

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  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    1y
    I’d  Plan on 20-35% down (Maybe Kiave has something less?) with rates in mid-8s and 2-5 points. Every lender has different cutoffs but for most I’ve seen 8 units is the max their wholesale side will lend on - so theyll push you to their commercial division. Not the news you want to hear, but just want you to have clear expectations. Hope you find something better, and if you do let us know! 

    Quote from @Ruben Goodbear Anders:

    Hello,

    I’m under contract on a 9 unit mixed use in west allis Wisconsin. Was wondering who you can lend on this and what a term sheet would look like.

    Purchase, 350. Rehab estimated 135. ARV 700. 8 residential units 1 commercial.

    Thank you.


    808-517-6416
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  • Ruben Goodbear Anders
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2018 · 28 posts · 8 votes
    1y

    @Elias Halvorson  I appreciate it! Ok. Yeah, I mean I'm looking for hard money really. That's even proving difficult.

    @Jason Taken Got it. I'll keep asking away. I've contacted over 30 lenders already. haha. Even with higher downpayment, nothing! 

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  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    1y

    Loanstream and (I believe) Velocity mortgage both lend on mixed properties. Again, youll be looking at 20-35% down and 2-5 points, but they do lend on them. Not sure if they are in WI though.  

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  • Ruben Goodbear Anders
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2018 · 28 posts · 8 votes
    1y

    @Elias Halvorson ok great! thank you for the recommendation. I will message them both!

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  • Alexis Sostre
    Lender · Los Angeles, CA · Member since 2020 · 65 posts · 15 votes
    1y

    That sounds like a strong value-add play in West Allis. With 8 residential units and 1 commercial, this would be considered mixed-use multifamily from a lending perspective. A few things to note: Most conventional or bank financing for mixed-use requires closer to 20–25% down, especially on buildings with commercial space.

    Hitting 10% down is tough, but there may be creative ways to structure it for example, a bridge or rehab loan that funds a portion of the construction, or bringing in a preferred equity partner to effectively reduce your cash in.

    Bridge / Rehab Loan (Interest-Only, 12–24 months): Could cover purchase + rehab and get you to stabilized ARV of ~$700K, then you'd refinance into permanent debt.

    DSCR or Bank Loan (Permanent): Once stabilized, you could refi at 70–75% LTV. DSCR is usually faster and easier on documentation, while local banks might give you slightly better rates if you can show strong financials.

    If you’d like, I can put together a draft term sheet once I have: Current rent roll & leases, Rehab budget (line items) Exit strategy (hold vs. sell after stabilization).

    That'll let me show you a realistic structure — both on a bridge-to-perm setup and a straight DSCR/bank option.

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  • Charles ClarkBusiness Member
    Real Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
    1y

    @Ruben Goodbear Anders

    Thanks for reaching out and sharing the details. We can definitely review your deal and see what lending options fit best. Can you please share your timeline and any additional financials so we can put together a term sheet for you?

    [email protected]414-719-6090
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  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    1y

    The 5+ unit market has been rocky the last 24 months. I broker DSCR and I don't even really market 5+ right now. Can I do them? Sure. I'm closing on one Wednesday. However, rates are higher and leverage is reduced. From my understanding, the secondary market where these loans are sold, there's not a large appetite for these right now.

    Long story short, it's very unlikely you'll get what you're seeking for this asset class.

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  • Tom S.
    Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    1y

    @Ruben Goodbear Anders  You mentioned:  even with a higher downpayment, and contacting over 30 lenders, nothing - what are they saying exactly on the reason for no interest in the project?

    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Ruben Goodbear Anders:

    Hello,

    I’m under contract on a 9 unit mixed use in west allis Wisconsin. Was wondering who you can lend on this and what a term sheet would look like.

    Purchase, 350. Rehab estimated 135. ARV 700. 8 residential units 1 commercial.

    Thank you.


     Have you tried calling local hard money lenders? The deal will be tough with national lenders since it is 5+ unit rehab and mixed use. 

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  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes
    1y

    Unless your credit and exp are superb you are not getting 90% on this structure.  It is mixed use and 5+.  You are putting up at least 20%, probably closer to 30%.

    0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 678 posts · 242 votes
    1y

    @Ruben Goodbear Anders hitting 10% down on a 9-unit mixed-use property is tough, but there may be creative ways to structure it. The most viable path for a 10% down payment is possibly starting it of as fix & flip loan (short term Interest-Only, 12–24 months) up to 90% of the purchase and 100% of the rehab. Then once stabilized you'd be able to refinance into a DSCR loan (30Yrs or 40Yrs loan term) at 70–75% LTV. This is usually the fastest way, with less documentations. 

    If you're still seeking for a loan, I can put together for you a draft term sheet, so you can compare and be able to make an educated decision.

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  • Jake YuskaitisBusiness Member
    Lender · New Jersey, USA · Member since 2022 · 254 posts · 67 votes
    1y

    for commercial that is not going to happen. you are probably looking 25% down MINIMUM and even that would be pretty good.

    [email protected]551-287-6884
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  • Bridget BrickBusiness Member
    Lender · Direct-to-Wholesale DSCR Loans | BRRRR & No-Seasoning Refi | 46 States · Member since 2025 · 53 posts · 11 votes
    1y

    We have a DSCR product available on up to 10 units. The min down payment on multi-family is 25% and will require leases in place plus other docs.

    Let me know if you have other questions!

    [email protected]619-993-0504
    Get Brick Capital
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  • Bryon AndrewsBusiness Member
    Real Estate Agent · Saint Paul, MN · Member since 2018 · 201 posts · 104 votes
    1y

    In my experience with mixed use buildings, banks don’t want to touch them. However, I have done a couple with low downpayment like you are talking about, but I had to utilize a seller carry back as a second mortgage. For example: 5% down cash, 15% second mortgage (Seller Carry), 80% bank financing. Interest rate was higher than everything else and amortization was 20 years. 

    [email protected]715-892-4596
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  • Tom S.
    Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    1y

    @Ruben Goodbear Anders  Did you end up finding a lender?  It was about a month ago you mentioned you were under contract in your original post.

    As Bryon stated just above, I've also had success in the 5%, 15% seller finance, 80% 1st lender combination.  Commercial loans only.

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