Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply

User Stats

11
Posts
4
Votes

Hard Money Loan to Purchase Apartment Complex

Posted

Hi! I am looking to invest in real estate, I am in CT where things are expensive. My goal is to one day buy an apartment complex. After doing research I am thinking if should I continue to save until I have enough to put down on an apartment complex rather than buy a bunch of multi families which in the end would cost the same amount down? 

Also, if I were to purchase an apartment complex can I use HML to attain the property and use it as a down payment, then eventually refinance with a bank for better terms? I am unsure of how HML work when buying an expensive property, $800,000 +. If I could use HML to buy a property, then I could essentially get the complex sooner rather than later.

I have good credit and some money saved, but nowhere near enough for a down payment on an apartment complex 800-1M. Looking for some input & guidance in financing world! Thanks for your help! 

Most Popular Reply

User Stats

303
Posts
363
Votes
Steve Hall
  • Rental Property Investor
  • Texas
363
Votes |
303
Posts
Steve Hall
  • Rental Property Investor
  • Texas
Replied

@Christina Morales Welcome to BP!

Impressive first post. Disappointing second post. It seems the responses given above have lead you to believe "I can't afford it." That's unfortunate.

If you want a $1 million apartment complex, figure out how to make it happen!

Forget about HML. That's for short term investors, like flippers. Can you think of other ways to get what you want?

I'll get you started on some things to think about:

1) Connecticut properties are too expensive and have low cap rates. Look for apartment complexes in other states.

2) Seek out seller financing deals. Every seller is different; find one that is open to terms that work with your situation.

3) Regarding not having a large enough down payment, have you tapped all of your resources: IRA, 401K, Life Insurance cash value, equity in your home, etc?

4) Find other investors in the same boat, with the same goals, and go in on an apartment deal together. Owning 25% of a $1 million apartment complex is better than owning nothing, right? Plus it gets you MF ownership experience!

Remember: never say "I can't afford it.", instead say "How can I afford it?"

Loading replies...