Fourplex financing problems

[Jennifer Greuel]

I am really stressed out right now. We have a 4plex under contract and it is a great deal and cashflows well. Our lender had said we could put 20% down but is now saying he needs 25% down (no reason as far as the deal or our credit, I think he is just incompetent). We can't afford 25% down, that would pretty much be every penny we have besides our checking account. Does anyone have a recommendation for a bank that allows 20% down for 30 years and a four plex? Or does anyone have another idea? I don't think we are willing to go the private financing route...

[Charles Carillo]

@Jennifer Greuel

25% is the normal on 2+ unit multifamily investment properties. Make sure in the future that the lender you are using is actually experienced in commercial; most are not. I do not know about your current financial situation or the property but you should have have a liquid cash reserve of 10% of the loan amount + all cap. ex. (renovations). Make sure to save $500 per unit per year for future large expenditures. You might be able to get away with minimal reserves in the beginning but save all cash flow because there are always issues; especially in the beginning.