First MF under contract! Commercial lending help please

[Alice Huang]

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

[Alice Huang]

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!!!