First mid-size multi family

[Robbie L.]

I'm planning on buying my first multifamily mid size in the next few months. 

I've been searching on Loopnet for garden buildings in the 3-4 mil range. 

I'm interested in already stabilized properties and COC of 11% or better.

I have time to dedicate and travel as needed, so i'm looking all over the country. 

I need a roadmap and a spreadsheet. God help me. 

[Joel Owens]

Hi Robbie,

How are you trying to by this property?? Using a syndicate you set up, a partnership with you and others, or putting all the money in yourself for the down payment??

At 3 to 4 million you should be able to get away from local to regional banks and get better loan terms fixed for ten years with 25 year amort. Youc an go 15 or 20 year terms but basis points creep up another 50 to 100 or so on the rate reducing returns. 11% COC pre-tax is doable on class B assets. Typical is 25% down but in some cases you can go 80 or 85% ltv for 15 to 20% down.

Would have to know more about your goals. Remotely you need to better quality on the assets for less headaches.