Apartment complex loans, ~1mm - 2mm

[Andy M]

Hi,

I'm going to be purchasing a apartment complex (or a few, depending on how much I have to put down) in the near future. I have a personal credit score of 750, an income of ~110k, and 200k in liquid assets.

I'm looking at a number of reasonably similar properties. One of the best is a 56 unit brick building in Michigan, asking 900k, recently renovated, gross rent 310k/yr, NOI 177k/yr, DSCR thus >2.

I'd like to know what mortgages might be available at different down payments. E.g. what terms could I get with 20% down, 10% down, or even nothing down?

Looking forward to some answers soon, I'm hoping to move quickly!

Andy

[Richard Warren]

An apartment building would require a commercial loan. You are generally looking at 30% down. Credit score is much less of a factor than operating income. They way around the 30% down is to get the seller to hold a note for the difference, get a loan for 70% with 20% down and the seller carrying a note for the balance.

8)

[Mark McGlothlin]

We've been able to finance several projects in the past year at 80% LTV - the keys for multfamily given the current credit markets are a very strong project in a very strong market right now. Weak secondary or tertiary markets are very difficult to get even a solid project funded in. Your DSCR value sounds a bit high in what you've reported, most lenders would be thrilled to see one over 1.5 right now; you're probably not in a formal due diligence window but the numbers you've been provided on the expense side might be a bit low......

Rehab702 is absolutely correct in saying that you'll obtain a commercial loan and your personal credit will have very little if any bearing at all. With a project cost of $900K, this may be one that your bank would / could help you with also....

[Chad Black]

100% Commercial Financing? YES!!!


Found the deal but you don't have the down??? We can help! We are a full accredited Commercial Down Payment Assistance Program. The criteria is simple:

1) Seller MUST be willing to work with Buyer to optimize Commercial DPA.
2) Property must have sufficient equity in order to structure the DPA into the purchase.

There are several key benefits to our program:

a) Ability for Buyers/Investors to obtain Multi-Million Dollar Commercial Assets with NO out of pocket Down Payment!
b) Better Rates/Terms! Because of the new LTV %, thanks to Commercial DPA, banks will offer both better rates and terms on your loan.
c) Sellers willing to work with our program will open the doors to MORE BUYERS, which will allow them to obtain above average NET figures, while cutting there days on market!
d) Real Estate Agents and Commercial Loan Brokers. Get more deals done, PERIOD! ! !

For more information please fill free to call or email me with any questions or property scenarios. Thanks.
--
Chad M Black
Managing Partner
Midas Capital Funding, LLC
[email protected]
1-405-826-6356