This might be a workable scenario for me.
Lack of experience would not kill this deal for us but it would depend on a few things.
Usually the biggest challenge for newer investors is in the amount of equity you have available to infuse into the project.
You need to have a cash down payment to secure financing.
With 25% Down you would be in a multiple financing offer situation where we're just fighting to get best deal possible and batting off Wholesale Account Execs left and right. We could overcome just about any challenge and still secure funding.
With 20% down you would have a variety of solid options but some lenders would turn down the deal... which is fine, you only need one loan.
With 15% Down you have an outside chance. The seller would like have to carry back 5% - 10% and it would be unlikely to work for the property that is 68% occupied because the DSCR would probably not support an 85% LTV loan, unless you are getting an absolutely screaming deal.
Do the 140 units need rehab? This property may not be quite ready for permanent financing. I do have a Commercial Fix and Flip Program that will provide cash for the acquisition and to Rehab the property.
Once it's stabilize we can secure Permanent Financing and take out the bridge loan.
Multifamily has, by far, the most interest in CRE Financing world, if it's a good enough deal we can get you the financing but I refuse to make bogus promises about what is and is not possible.
If you DO NOT have the cash to put down on the property there a few creative financing avenues which may be possible if you have a motivated seller that is willing to work with you on terms.
The 68% occupied property would be most fit for creative financing because there is clearly something going on there with the current owner.
You can look at a master lease with an option to buy or doing a wrap combined with a seller second... the only thing is that the seller is highly unlikely to accept those scenarios.
Now... there is one "highly unlikely to happen" scenario where you could technically get 100% financing but, again, the seller would have to be out of his mind to say yes.
It entails a Hard Money FIRST MORTGAGE of less than 50% of the "Quick Sale" value as determine by a BPO... this would serve as your down payment. The seller would have to carry a very large second mortgage and this point will stop many deals in its tracks... but it's not impossible and it would definitely work if you can get the seller to agree to carry a large second.
The other high LTV scenario would also involve a hard money lender and instead of cash we can cross collateralize with other real estate you own assuming there is sufficient equity in said holdings.
The challenge in this scenario would be the cost of the hard money... it may be workable on the 140 units, assuming you are getting a good enough deal on place. The reason it may work is because as you lease the property up the value will increase making it possible to refi into a Perm Loan after the property is stabilized.
I don't know if this is what you want to hear, but it is the truth and that is what you'll always get from me.
I love talking shop, you can reach out anytime and we can discuss the scenario and your qualifications and I'll give you the real deal on what is and is not possible.
