Multi-family loans under 1 Million

[Jesse Rivera]

I have a client that wants to buy multi family in the 800k range, be I can't find a loan for him. My commercial source only does 1 million and over. Any suggestions? And what would the downpayment need to be?

Searched the forum but found nothing.

Thanks!

[Mike Dymski]

I have a commercial loan less than $1 million, 75% LTV, 25 year term, 7 years fixed, floating for the following 18 years, 25 year amortization. Call all the community and regional banks and credit unions and reach out to commercial mortgage brokers. Contact commercial real estate brokers who deal daily in the product type and they will definitely have lender referrals. Vetting lenders is just a natural step to find out which ones have an appetite for your property type, loan size, and for the borrower. I recommend that your client have their tax returns, personal balance sheet, and resume ready and, IMO, it's best (but not required) to package this up in a business plan/financing package. An $800k multifamily property is a just a small business and it will be treated as such. The lenders are a 75-80% partner in the deal; so, it's just part of finding a good fit for both sides and establishing a business relationship.