Funding Options on brand new 7 units in good market

[Ty Schuman]

Hey Guys,

I have a deal where the seller has many projects going on (Developer) and is in need of cash flow, so I am looking to purchase all 7 units once certificate of occupancy is delivered in June, with first right to purchase the additional 18 units that will be finished in September. Units are as follows:

7-2 bed / 2.5 bath with large office and garage 1,910 sqft

15- 2 bed / 2 bath 1,189-2,228 sqft

3- 1 bed / 1 bath 962 sqft

My LTV on the deal is roughly 70%. I am looking for best option to finance the 7 units with probably a bridge loan in anticipation of selling 5-6 of the units, leaving me 1-2 free and clear that would gross $6k in rent as LTR in this market. Because of the growth this market has experienced, they are experiencing a housing shortage, with (Apples to Apples) comps selling for full asking price in less than a month. Over the past 180 days, days on market for all comps is 62 days.

I recently just purchased another property (SFR) that is about 60 days from going on the market, and I have over $100k + in equity in the home, that I will do a cash out refi on as soon as upgrades are completed, but am lacking liquidity due to a recent second cash purchase (SFR). Because I only need a short term bridge loan for the 7 units, can anyone recommend a lender who would be interested in funding the following:

$2,800,00 Purchase Price (7- units)

$4.025m - $4.165m Anticipated Appraisal Price (upon completion)

Brand new 7-plex right next to a large recreational Park. Great location that provides walking distance to schools, parks, restaurants, and retail shops. Units have1910 Sf with 2 beds, 2.5 baths plus a large office with an oversized 450 sqft garage. Other features include: Quartz counter tops, stainless steel appliances, LVT flooring, upgraded cabinet package with soft close, oiled bronze fixtures and glass shower doors. The finishes are consistent with other recently sold units. I have lived in the market for the past 6 years full time (currently not their due to family member health situation, but will be back and forth for the next few months.  I am very familiar with the location and the developers and the quality of their builds, which are top notch. 

My personal credit is not great, due to a previous partnership (restaurant-Covid19 related), but I have experience in Real Estate having built 4 residential homes, 2 commercial properties from the ground up over the past 8 years. I am looking to get into this deal based on it being a short term bridge loan based on LTV, anticipating paying off with 90-120 days from sale of units and or paying off as I roll the loan into a HUD backed Multi-Family loan, or similar financing for the remaining units if I decide to exercise my first right of refusal. I would appreciate any advice on lenders you may recommend as I have done most of my deals with a local bank that does not lend in that market due to being outside of their market, unfortunately. If someone can recommend lenders who you previous used who lends based on LTV and strength of collateral for multi-family properties, I would greatly appreciate it if you would send me a message. I hope everyone is killing it, and any deal feed back on my proposed deal (don't want to post specific details of the deal in a public forum) I would appreciate a DM or email to discuss it.


Cheers,

Ty

[Marty Johnston]

@Ty Schuman there are a number of ways to structure the financing here with different Lenders depending on what you mean by "Credit isn't the greatest", where is your credit currently? You're in a good price point where non-bank lenders and family offices will be interested - it sounds like you have options here! Sending you a DM.