Multi-family BRRRR / No Tenants

[Travis Jenkins]

There are 3 multi family deals I can get under contract a 7 unit, 5 unit, also a 17 unit. All have been boarded up but Ive spoken with all owners. I do not want to wholesale these deals. Id like to BRRRR. Id appreciate any advice on structured financing to get these rental units up and going or how would you approach my current situation?

[Hooman Ghaffari]

@Travis Jenkins Bridge construction loan financing will get you 60%-70% loan to total cost (purchase price plus construction budget), so you'll need the equity for the down payment and caring costs and any cushion you'll need. This is almost hard money so expect it to cost at least 8%+2points and give you a 6 month to 1 year term. You may be able to get something similar from a local bank that focuses on development. That would be cheaper (4.5%-5%+1point) and may offer a longer term like 5 years. Once you complete renovations and stabilize you can go for a refinance based on stabilized market value. You'll probably need to hold the deal for at least a year before refinancing so your lender feels secure.