Easier to finance vacant property or finance the repairs needed?

[Tyler Schmick]

I am trying to purchase a 23 unit apartment complex that is vacant and in need of repairs. Will it be easier to finance the complex or finance the repairs? I have cash to do one or the other, but not both. Any recommendations would be helpful! Thanks, Tyler

[Kathy Henley]

You need a money partner @Tyler Schmick The property has a low value now because it has no income. As you fix and fill the vacants, the value goes up. Don't be afraid of using a commercial lender, one may like the opportunity to earn money with you. They may dole out the funds in installments, requiring certain things to be completed before another chunk of money comes your way.  This allows you to put some money into the acquisition and some for the expense of rehab.

And then there are hard money lenders. You might attract one by offering equity in the deal. Or you might set it up like a loan, which you pay back a certain amount for a few years, with a balloon payment a few years out.  This would give you time the make the improvements, stabilize the asset and then get a commercial loan; which allows you to pay the original money person in full.