Financing large multi family scenario

[Harry Wilson]

so I have been saving, I have around 10k my father may Ben putting up some capital, around 100k.

I want to purchase a multi family rental with 16+ units. 

So I have to find the deal now, I want to buy the biggest deal that I can, let's say I find a deal at 1 million, how do I get the bank to give me a loan?

And who do I go to? 

There's lots of information on everything apart from this area, if someone could help me that would be great

[Brian Adams]

@Harry Wilson, I buy 100 to 400 unit deals so when you are working on assets greater than 5+ units you are most likely playing in the commercial world.

If the numbers make sense on a 16+ unit deal, a Lender won't just give a mortgage to anyone. If you don't have the experience, net worth and liquidity you will need to find a loan sponsor to sign for you. Normally the debt is non-recourse on commercial assets.

Loan sponsors come in many different types. One type could be a person with the net worth and financial strength, but they may lack the experience or how to find good deals. So if you can complement and leverage each others strengths you can make a deal work. There is a good chance though the loan sponsor will want a big chunk of the deal as they have more risk. 

Remember - sometimes you might need to give more away on the first deal to get you in the game. As you get a track record, the game we play definitely gets easier.

Good luck!!