Newby - Large Multi-Family Purchase Timeline

[Marcos Carbi]

Hey guys, I'm currently analyzing a 14 unit apartment building but have never done a large multi-family deal. I was wondering what the timeline for such a deal looks like. E.g., when you see the property, when do you collect funds from investors, letter of intent, purchase and sales agreement, when you get your loan, etc. I'm quite new to this so the more detail the better!

I appreciate any and all responses/guidance. 

[Evan Polaski]

@Marcos Carbi, typically 60 days from contract execution to close.  Depending on the demand of the property and the style of seller/broker, from first look to signed contract could be very quick (a day or two) or a month if there is a call for offers with LOIs, and best and final calls.

LOI and PSA are going to depend on the seller and listing broker. I see deals this size listed by residential agents and buyer and sellers sign a board of realtors contract. It could be a fully custom contract with attorneys on both sides, etc. So this will depend on your deal and how hard nosed you and your attorney are on fighting every point.

Loan won't be until after PSA is signed and again can be 30-45 days, but if you have a relationship with lender, and all your needed items, can be faster.

Investor money depends on your investors.  Sometimes money is coming in 2 days prior to close, sometimes you can get it much sooner in the process.  Depends on your needs and your relationship with your investors.