Who finances bad credit apartment buildings

Question

There are 2 apartment complexes that are deemed commercial because they are apartments and not townhouses or duplexes. So my question is who can I go through to finance these as my first investment properties? They are a package deal. At 1.4M? I want to be able to have 100% legit funding. Idc I will put my house on it. Literally. Because I know I can do this. My credit isn't great though. But literally we been doing this but for other investors. This is something I have wanted to do my whole life, I want to help the low & middle class families have a great place and also put back into the community by also housing people trying to get back on their feet. And reduce the homeless rate. Which I would figure would be some kind of government funding, right?

about 97% of the units are already leased, and under a year contract, so there's that.

My husband and I have had our own business for over 3 years now dealing with fixing, rehabbing, flipping, and rentals for someone else. We are ready to do this for ourself. Please any insight would be great. I don't want to miss this deal because of being uneducated.

about 97% of the units are already leased, and under a year contract,  so there's that.

My husband and I have had our own business for over 3 years now dealing with fixing,  rehabbing, flipping, and rentals for someone else.  We are ready to do this for ourself.  Please any insight would be great. I don't want to miss this deal because of being uneducated.

Shiraz Suleman · Answer

That’s great advice.

Noble intentions but not for everyone and there is high risk of getting hurt financially.

Erik W. · Answer

That's a noble goal you have. Decent, low income housing is hard to find.

Here's the major problems I see and some possible solutions:

1) While you have worked with someone on these kinds of projects in the past, you were not in the driver's seat. Lenders prefer to deal with people who have experience.

Solution: Try it on a smaller scale with some inexpensive houses first and build a reputation as a the project manager/leader from start to finish.

2) Your credit is not the best. You didn't say why. Regardless, the reason is irrelevant: lenders don't like giving money to people who are less likely to repay, and right now that's what you've said about yourself.

Solution: Get organized, lay out a written budget, and follow it every month to get caught up on your current debts. There are a lot of financial coaches out there who are great at this. Dave Ramsey is one of the more popular and useful with his down-to-earth, easy-to-follow advice. His books are cheap ($10) and quick to read and put the concepts in there into action. 6-12 months from now, your situation may improve significantly, which might not only help you get approved, but also it will reduce your interest rate.

3) Working with the homeless. Again, a noble goal, but often times the reason people are homeless is because they have underlying issues such as mental health or substance abuse. Many places are available to keep people off the streets if they're willing and able to follow a simple, basic set of rules like no drinking and no illegal drugs. It says something else deeper is going on when they can't do that. Will you have the resources to get them to cope?

Solution: Partner with a local homeless assistance agency and learn the ins and outs of dealing with people who struggle with mental illness, alcohol, and illegal drugs. Maybe they have access to resources that could assist you.

In summary, being a regular, everyday landlord is hard work. Being a landlord for people who struggle with basic life necessities like housing is harder work. Doing all that plus going solo on your first big move into multimillion $ homes for people who have more struggles than most others ... that's going to be super tough. If you've got the guts for it, all the best to your efforts!