All Forum Posts by: Matt Crawford

BP, 

I have a 7 unit apartment building that I have a bunch of equity in. Is it possible to get a line of credit on this property much like you would get a HELOC on a SFR? Right now, my only understanding to how to get access to this equity is through a cash-out refinance. Other Thoughts / suggestions?

Grateful,

Matt

Hey BP, 

I am in search of a Private Money Lender for a 5 Unit Apartment Building that I have under contract. Here is a little info regarding the property:

• Purchase Price: $250,000
• Looking for LTV of 90%
• First Lien position
• Interest Rate: Negotiable
• Structure of payments: Negotiable
• Ballon in 24 months (either through a cash-out refinance OR selling the property)
• Location: Northwest corner of Missouri

Please Contact me at 816-853-6834 to discuss further.

Grateful,

Matt Crawford

Steward Properties Group

Hey BP, I have a contract to purchase a 5+ Unit in Northwest Missouri. I have a lender who is willing to do 5.75% for 15 years, but I would like to see if there is anything better. Ideally I would like interest to be 5.5% max amortized over 20 years... Does anyone have a lender who could offer more favorable terms?

Thanks @Stephanie P. for the input. I Did a complete rehab on the 7 unit within the last two years, forcing much of the appreciation. I essentially want to do the BRRRR strategy on this property... The two banks that I have talked with are uncomfortable loaning out on "unearned equity"... Any suggestions on finding a bank that is friendly to the BRRRR strategy?

Thanks @Ruchik Gandhi for the input!

@Matt Hurley - Great questions! I think your right, partnerships can be great things! I am open to considering this. 20% is $50K. I have roughly $175K in equity in the 7 unit based off of a 9 Cap rate. I do have a HELOC on my personal residence. The 7 unit is cash-flowing nicely right around $2,200/month.

Hey BP, I need your help. I just secured a contract on a 5 unit residential building in the NW corner of Missouri in a state college town. I Have clearance from a local lender that will provide 80% if I come up with the 20%. I can make this happen from pulling from some retirement investments and a HELOC, but these seem like the last resort as it would hinder further deals. This is a value add project, increasing the value $60-80K, primarily by getting rents up to market rent. There is also the potential of splitting a huge unit into two separate units for more value add. Below are some additional ideas I have to come up with my 20%:

1. Interest only debt partner with a healthy interest rate (roughly 10%) for 3 years.
2. Using another property I have (7 Unit) as collateral. I have roughly $150K+ in equity in it.
3. Refinance my 7 unit property and pull the cash out to fund this deal. 

What do you think my best option is? Is there another option that I'm not thinking about and should consider?

Thanks @Bob Starlin. I ended up using a local attorney. 

Do it

@Pat Jackson