Financing Purchase of Multiple Single Family Homes

[Pat Zorne]

I have the opportunity to purchase a number of single family homes as a package deal. They are being sold at 50% of appraised value according to L/A. The appraised value is just over $5,000,000 and he is selling them for $2,500,000. He is also showing a NOI of $350K/yr. My question is: Is there anyone who would finance this deal under this scenario-- Purchase the homes with a hard money loan of $3,000,000 which would help cover acquisition costs and any repairs that might be immediately necessary. He states that they are 85% occupied on long term leases. Then after the property is acquired and rented out 100% to get a more conventional loan.