Looking for Financing for 13 Unit building in Chicago

[Joel Zawko]

Hello BiggerPockets,

I am looking for financing a rental property in the Chicago area. Having trouble finding lenders who do deals for large multi-units. I have excellent credit and 25% down is not an issue. Anyone have any suggestions for buying buildings like this in Chicago? 

I appreciate any assistance/guidance anyone may have.

Have a great day,

JZ

[Louis Jeffries]

@Joel Zawko Hi Joel,

Financing commercial multifamily properties is different from financing 1-4 unit properties. First the loan is based on the cash flow of the property, not your personal income. Secondly, there are different options depending on the loan size. For loan amounts over $1,000,000 you can qualify for conventional (FNMA or FHLMC) financing. For many bank financing options the minimum loan amount should be $500,000 though there are alternate funding options down to $100,000 loan amounts.

That said the best terms are for larger loan amounts though there are many other criteria, including experience. As some programs will not finance investors with no experience. So finding a lender to finance your property means you want someone that focuses on commercial funding with many options that can meet those needs. If the property cash flows and you have good credit and cash reserves this property will be funded.

Respectfully