Hard Money Loan to Purchase Apartment Complex

[Christina Morales]

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! 

[Steve Hall]

@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?"