15 unit in my area needing advice

[Jason Barnes]

Ok so, I have been saving and saving and finally have reached close to 200k. There is a building in my area for 700k. I would prefer to buy it alone. I own a house that’s about 140k. I have a decent job making about 65k a year I’m only 26. Everyone keeps telling me I have to have a net worth to cover the loan which I have nowhere near. I also have great credit. This would be my first property is there any way this deal could be done. How can I get a loan to cover the rest of the building price?

[Evan Polaski]

@Jason Barnes the net worth covenant comes in for larger deals (typically $1mm+ loan balance) and non-recourse.  You are looking at a loan balance where you will be dealing with local banks.  As mentioned, call around.  You will likely have the most luck with the local credit unions, and smaller regionals versus the large, national banks, but no harm in trying them all.

They will both underwrite the asset, as well as you.  Having airtight financials on the property, a well written business plan, potentially even estimates for immediate repairs from reputable contractors will all help, once you find banks that can work with your situation.