How can I get this deal done?

[Christopher Robinson]

Hello everyone! Long time lurker but I seem to be stumped on this. So long story short I found a property that’s almost completely gutted, has 11 beds and 8 baths, would be an 8 unit apartment building. Currently I don’t have a ton of cash on hand, but the seller offered to finance the purchase (would be around 10k down) but that would still leave me looking for a rehab loan. So my question is should I take that offer and then look for a rehab loan, or should I find somewhere that can just bundle the purchase and rehab together? And if so any recommendations? I’ve looked into hard money and most places seem to only be willing to do 1-4 units so I’m stumped.

[Jared Baker]

If the place is gutted most likely you will most likely need to go a hard money route or private money.  Second is have you run the numbers?  Have you got contractors to walk through and provide quotes for the work?  This "deal" could go sideways very quickly if you have not gotten costs for all the work that needs to be done.  Finally 8 unit is commercial so your financing is going to be very different than a standard mortgage.  Finally if this is your first place you are looking at even if you get hard money the terms may not be beneficial to the deal.  Ie. if you haven't done this before you may pay a higher interest rate or pay more in points up front or higher down payment.