Financing a 12-Plex Apartment

[Benjamin Pifher]

So I have a new business a 2 properties in it. I found a 12-plex apartment complex that is pretty nice and I want to make an offer on it that would get me 6% ROI.

My problem is that I don't have the cash on hand for 20% down for a commercial loan. Could I use mortgage insurance to help me convince a lender to let me put down lower than 20%?

[Joshua Messinger]

Hey @Benjamin Pifher! 

I don't believe this will be possible. Most commercial loans usually require a greater down payment of 20% unfortunately! Don't let that stop you though! You may be able to structure the deal in a more creative way that doesn't involve the bank. 

I hope this helps and if you have any questions don't hesitate to reach out to me! 

- 

Josh 

[Michael Oliver]

Quote from @Benjamin Pifher:

So I have a new business a 2 properties in it. I found a 12-plex apartment complex that is pretty nice and I want to make an offer on it that would get me 6% ROI.

My problem is that I don't have the cash on hand for 20% down for a commercial loan. Could I use mortgage insurance to help me convince a lender to let me put down lower than 20%?

Have you considered seller financing ?

[Benjamin Pifher]

Quote from @Michael Oliver:

Quote from @Benjamin Pifher:

So I have a new business a 2 properties in it. I found a 12-plex apartment complex that is pretty nice and I want to make an offer on it that would get me 6% ROI.

My problem is that I don't have the cash on hand for 20% down for a commercial loan. Could I use mortgage insurance to help me convince a lender to let me put down lower than 20%?

Have you considered seller financing ?

 Unfortunately the seller will not do that, that was the first question I asked.

[Wale Lawal]

@Benjamin Pifher

You should check with multiple lenders as they will have different requirements.

Also you can consider alternate options like seller financing.

Read this documents for more information https://www.hsh.com/finance/re...

Good  luck!