Difficult Multifamily Funding.

[Kyle Varga]

I've had difficulty finding funding for this deal because my net worth isn't 2X the bank loan amount. I've found the always talked about but nearly impossible deal of nearly 0 money down in multifamily. 

I have 100K I'm using for the small amount of rehab there is left the property is 50% occupied and going up even through COVID.

I also have $150K in stock for emergencies but am trying to not to liquify in the down market. 

I can make this work with 65% LTC but would be in a better position against anything not going to plan at 70% LTC. 

My plan is to refinance as soon as it's stabilized and hold long term.

I have experience working in multifamily for the last 4-5 years. This is the first deal I'm trying to buy as the sponsor/hopefully without partners but understand if that is the only way.

47 Units in a small town.

ARV & Stabilized $3,600,000

Purchase $2,461,540

Bank Loan $1,600,001***

SF@3% $861,539 - 2nd lean position

Closing Costs $40,000 - from seller

Vacancy Escrow $71,540 - from seller

[Greg Dickerson]

Originally posted by @Kyle Varga:

I've had difficulty finding funding for this deal because my net worth isn't 2X the bank loan amount. I've found the always talked about but nearly impossible deal of nearly 0 money down in multifamily. 

I have 100K I'm using for the small amount of rehab there is left the property is 50% occupied and going up even through COVID.

I also have $150K in stock for emergencies but am trying to not to liquify in the down market. 

I can make this work with 65% LTC but would be in a better position against anything not going to plan at 70% LTC. 

My plan is to refinance as soon as it's stabilized and hold long term.

I have experience working in multifamily for the last 4-5 years. This is the first deal I'm trying to buy as the sponsor/hopefully without partners but understand if that is the only way.

47 Units in a small town.

ARV & Stabilized $3,600,000

Purchase $2,461,540

Bank Loan $1,600,001***

SF@3% $861,539 - 2nd lean position

Closing Costs $40,000 - from seller

Vacancy Escrow $71,540 - from seller

 You don't need a net worth 2x the loan for a deal like this. You should be able to get this done through a local or regional bank if you have good credit and financials. You will need to package it correctly and be willing to move accounts to the bank but if you talk to enough of them you will find one that will do the deal.