Multi-Family Financing

[Tom Scott]

I think I know the answer to this but I'll ask anyways. Is there any practical way to finance 100% of a multifamily. I've been looking at multifamily units locally and I just don't have the cash for a 25% down payment. I have enough cash to make repairs should the need arise, but not enough for a down payment on some of the larger units I am looking at.

Could you get a commercial loan for 75% and a hard money loan or a private loan for the 25% down payment? Obviously this would hamper cash flow but I'm thinking you could sacrifice personal cash flow for a short period and throw cash at the 25% loan to pay it off quickly. Obviously real world numbers will make each case different, but in general is it practical? 

Tom

[Steve L.]

This does not happen very often, but the most common way for this to happen is to buy a REALLY good deal and a hard money lender will finance it 100%.  Not very many hard money lenders will give you a second for all your cost, but if they are really safe they will give you a first.  After a 6-12 months of seasoning you can get a conventional lender to refinance the hard money loan.

Another option is Seller financing.  Or a Seller financed second.  

Good luck.