Difficult Loan on a residential building

[Michinori Kaneko]

Hi,

I have a potential property i want to buy.  It is a residential building with approximately 60 units.  I've seen the numbers, it cashflows well, but i've spoken to few lenders and it seems like it will be very difficult for me to find a lender for number of reason.  I'm wondering if anyone knows a lender thats willing to finance the deal with all these (potential) issues in mind, Please note i'm looking for a lender and not looking for a partner at this time:

1. the building is only about 55% occupied.  THere are several reasons but basically the building used to be in a very rough shape, and when the current seller purchased it he evicted almost everyone one out.

2. Some are weekly rents, some are monthly rents.  rent frequency is based on the renter's income payment frequency. This building is also a low income housing. most people living here are living off of social security.

3. The seller is willing to give forgivable loan of 20% of the purchase price, and the remaining 80% needs to be financed from a lender. based on 2019 schedule E, the building's NOI (or rather EBITDA) is more than enough to cover the 80% financing. I would say NOI is 30~50% more than the mortgage payment based on what the interest rates will be.

4. the price is very low compared to other 60 unit properties. i know most lenders has minimum per door loan amount.  I would be significantly under this requirement in most cases.

based on these issues, i'm wondering if anyone has recommendation on a lender that would still be willing to finance this deal.  Thank you for your help in advance!