How to finance a 6-8 unit MFH?

[Bryant T.]

Hi BP Fam,

I am looking to step up to the next level beyond 2-4 units and dabble in the 5+, which means I can't go conventional or even hard money. What options are there? I've been reading up on Commercial Real Estate Loans, but the biggest question is how to find a lender that can/will:

1) Lend lower amounts $100-150k+

2) Not require me to have been a investor for 5+ years (just started a year ago)

3) Require 2 years of tax returns as a business..my partnership is less than a year old

4) Not require full occupancy..i've found a building that has 5 out of 6 units rented and another that 4 out of 6. 

I see the big banks but they all have minimums of $750k loan limits and the hard money lenders want 2+ years of 5+unit MF management experience...

Any ideas? I have my eye on a few..

Thanks,
Bryant

[Benjamin Aaker]

Don't go with the big banks. Talk to a bunch of local banks about this. You'll need to personally guarantee your loans. First, put together a small document that shows your personal income (W2 will be better here but not strictly required), debts, and any real estate income/debts.
The bank will usually want a specific property to evaluate. Take the time to put together a nice pro forma with images to send to the bank. This thing should be professional-looking and show how you intend to raise the NOI over the life of your ownership.