Those of you who have bought 20+ unit multis, what were the terms?

[Mike Wallace]

down payment, loan terms, big bank or owner financing?

Just trying to see some real world examples of larger multi deals.

[Steve Olafson]

20-80 units would be considered mid-size apartments. 

Most deals that require a loan of 2M or more would be able to shop the loans with Fannie Mae, CMBS, life insurance, and banks. There are a lot of options here. Many of these are non-recourse and low interest rate.

There are some options for loans below 2M but the costs associated with them take some of the desirability away.

Most loans under 2M are done with banks.

There are many different configurations for rates, leverage, length of term, etc...  Expect an average of 20-25% down on decently performing properties.  5 year balloons with five year extension at going rates are common.  10 year balloons are possible to get but will come with higher interest rates.

Some lenders will allow for seller carryback on some portion of the loan.  I got a seller to give me 7% interest only on a 5 year term for 10% of the purchase price.  The lender in this case allowed for the second.  This particular property was a 1.2M deal.

I get a lot of loans on non-performing properties.  I have a great relationship with a bank and they will loan 75% of purchase price plus some money for rehab.  It takes a strong track record to get these types of loans though.