Structuring a multi family deal

[Kyle Howard]

I’m looking to structure my first multi family deal (only 4-6 units) and fill in the gaps where I come up short. If anyone has any advice that would be great.

Scenario: most of the lenders I'm speaking with require anywhere from 10-25% down on the acquisition and of course they'll cover the rest. If there's some sort of partnership with an individual who has more experience then the leverage increases. I don't have the capital or the experience but I do have relationships, time, a strong credit partner within my LLC and hustle.

I just need to understand with what I bring to the table can anyone explain how to structure a deal to get it to the closing table and get whoever is involved paid on time.

[Jason Stubblefield]

It sounds like this is ideal for a JV (Joint Venture). If you and your partner(s) both sign on the loan then the loan size, credit evaluation, and experience will include the whole group. This why the "leverage increases" potentially.

Also, I would point out that a 4 unit and a 6 unit will be loaned on differently. A 4 unit is residential whereas anything above 4 is commercial. If you considered living in one the 4 units, you could qualify for a residential FHA mortgage. The down payment for this would only be 3.5% versus a commercial loan that will require at least 20% down. Just something to consider.