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Updated about 3 years ago on . Most recent reply

User Stats

219
Posts
82
Votes
Alice Huang
  • Investor
  • Montreal, Canada
82
Votes |
219
Posts

First MF under contract! Commercial lending help please

Alice Huang
  • Investor
  • Montreal, Canada
Posted

Hello everyone,

We just got our first MF under contract. Not sure how to approach it (re: funding, loan apps and etc)

Here are the numbers:

Total units: 7 (4x 2 beds, 3x 1 bed)

Purchase price - $675,000

Renovations - $20K estimated on one unit but it can be deferred

Current as is ARV (estimated) - $950K

Current Rents - $6,050 (all month to month lease)

Projected Rents - $9,000 (market)

Taxes - $20,000

Current NOI - $33,310

Any pointers would be appreciated on how to proceed, what to look out for and etc

We close in 60 days.

Thank you all.

Best,

Alice

Most Popular Reply

User Stats

219
Posts
82
Votes
Alice Huang
  • Investor
  • Montreal, Canada
82
Votes |
219
Posts
Alice Huang
  • Investor
  • Montreal, Canada
Replied
Originally posted by @Adam Lacey:

Congrats @Alice Huang! Is the $20k the only reno that you'll be doing or is this a larger project to hit that market rent? With a deal that size I would find the local banks near the property and contact all of them. Be ready to pitch the property and why it's a good investment. If you have a partner with experience working on similar projects, that is a huge boost to your credibility with lenders.

Hello Adam, 

1 unit out of 7 is being evicted, so we are renovating that unit first.  Estimated rehab to be $20k for the first vacant unit. 

My partner has been in touch with local banks.  We should get a pitch deck ready.  THANK YOU!!!

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