Financing my first deal

[Jorden Solecki]

Hello everyone, I am looking for advice on how to finance my first real estate deal. The opportunities I’ve been interested in are multi-family residential apartments. I’ve found a few different apartment buildings for sale in my surrounding area and am curious if all the financials make sense and would make sense to investors, then what should my next step be? Is raising money through a commercial bank or private investors the best way and how should I structure the deal to ensure the investors get paid back as quick as possible? Thank you very much any knowledge is greatly appreciated. 

Jorden 

[Marcus Auerbach]

Good question and you will need to have it answered before you can make any offers. Private money is always good, family and friends are your first choice. Some people will split the profit, others offer 6% in return. I suggest find a deal you like and prepare a business plan. It will help you to better understand the details and you also have a test-case you can present to investors. 

You'll need bank financing for the balance. Local investors and good (investor) agents can tell you who the good banks are. People are ususally very open with bank referrals. Then it's time for the grind, call them, see who is willing to speak with you and set up appointments. Expect to talk to 5 or 10 or more before you find someone who is a fit for you. Every bank and every loan officer has different criteria, it's a little bit like dating - don't stop after the first girl didn't want a drink with you ;-)