Financing an apartment package in Texas

[John Allen]

Im trying to buy package of 30 units in Texas. Verbal agreement to sell at $350k. I have the 20% cash down payment but I'm struggling to find a lender. Package is 96.7% occupied (1 unit is gutted to the studs). Lots of deferred maintenance. Current owner is out of state and is just collecting paychecks.

Reasons are:

-building is ~65 years old

-not many lenders want to mess with a 280k loan in a small 15,000-30,000 population.

-building is 96.7% occupied but needs rehab as current tenants move on.

-current owner doesn't keep very good financial records.

-market cap rates in this area are around 8%. Based on that, this property(even in it's current shape) could be valued around 377. With the right renovations it could easily be worth much more.

TLDR: I have a great apartment deal in the works. I have enough cash for a strong down payment but not enough to pay cash outright. How do I go about finding a legitimate lender that will lend for a small apartment package?

I've already met with a local lender. He said it would be a tough sell because his small bank is currently purchasing another local bank (which is throwing off the banking environment in a small town

[Seth Wilson]

Read the book "Commercial Mortgages 101" and follow every step in it! Then call every bank that you can, and ask to speak to the VP/Head of Commercial Lending. When you talk with them tell them about your project and ask to send them they loan package that you made from the book "Commercial Mortgages 101".

I did this on my last property and had 3 legitimate 'Intent to Lend' Letters within 6 hours. I picked the best in the litter and closed on the property. 

Oh, and verbal agreements ain't ****!

Good luck let us know how it goes!