🔓 Creative financing unlocks Multi Family Apartment Investment Cash Flow in Oregon

[AJ Wong]

Oregon is a prime region for seller and creative financing on real estate transactions. I've personally utilized private notes on three transactions and participated in another handful of negotiations with sellers on behalf of buyers in the past five years. 

Perhaps the most consequential transaction involving creative financing solutions was a recent closing for a 20+ unit apartment complex in downtown Eugene. In short: $4.25M Purchase Price. 15% down. 3.25% with seven years remaining. 

How? We approached the existing lender for a loan assumption. The mechanics of the transaction were actually very involved and some of the most intricate and detailed of any transaction I've been a part of, however the results were worth the effort. Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer. The solution could be a creative financing solution such as a total or partial private note, an assumption of the note or LLC, a speciality or local lender, or any combination thereof.

Without this workout, the down payment requirements, current levels of interest rates and cost of the transaction would not be incentivizing enough to for investment. 

[Mike Grudzien]

Good job!  In this economic environment, creativity rules.  Even if one has to provide the education to some of the parties as to why a particular creative solution makes a win-win-win for all.  Once everyone understand the mechanics, and the results for all: they'll keep coming back to the table!