How to finance class B property

[Ben W.]

I was looking for advice on how to refi a 12 unit multifamily I purchased recenly in New Jersey. Currently, the previous owner is holding note. There are 3 structures on the property totaling 12 units 100% occupied. Is the Fannie Mae small loan a good option?

[Pavel Sakurets]

Do a search online "multi unit lenders in your city" and contact them. Also contact local community banks, they are fighting to get small loans.

Most likely they will finance it at .75 LTV and the value will be based on NOI and cap rate and not on market value since it's a commercial property.