Need help financing a 20 unit property

[Gary McDaniel]

Hey Guys,

I'm needing a little help in structuring a deal/financial advice. So I'm negotiating a 20 unit property for sale for 300K. Needs quite a bit of work, but it is currently partially rented out, so it is cash flowing a bit. The owner wants a 30 day close with $10K EMD down and 7 day due diligence. The owner doesn't want to do a blanket purchase, but to sell each building individually (there are 4). Owner also said he would possibly finance with $190K down. My HML said that they would finance the purchased and rehab, but I would need to put down 20%. I dont have the 20% personally. The HML also said if doing the possible owner finance that they would have to have the first and only lien on the property. This is my first purchase so I want to make sure that I don't over extend, however it seems like a really good deal.

[Geordy Rostad]

@Gary McDaniel

Seems like the owner wants to run away from this deal fast based on the 7 day DD and 30 day close. Then he wants you to close four loans on top of all that? hmmmm

So around here, I've found several HMLs that will do 10% down at 10% interest and they will finance the repair costs.

Have you gone to any local real estate meetups there? Try meetup.com and Bigger Pockets events section. Go meet some people and find more HMLs.

It does indeed sound like an excellent deal but it's hard for me to tell without seeing all the numbers. You could rack up substantial interest but if you can get it totally fixed up and rented out in 6 months and then refi it with a commercial blanket loan, you could potentially walk away with some cash.

Have you calc'd out all the repairs and the ARV?