All Forum Posts by: Phillip Christie

@Phillip Christie   wow you got a lot people chiming in, this is a great community here. 

Phillip, I seen where lenders ask for inexperienced people like you to have an experienced property management company to manage your property, and if can pay for that while your DTI still qualifies your loan, then you are in luck.

That said, make sure you got a way to cancel your PM agreement without penalty incase you want to fire them or just want to do it yourself after your loan funds

Good luck
 

@Phillip Christie Hi Phillip. Congratulations on wanting to expand your portfolio. How many units is this multi family? It’s a little different if it’s a 6 unit and you want to self-manage or a 30 unit and you also want to self manage.

In the case that it’s a smaller multi family, like under 10 units, I’d simply say look for a new lender and learn as you go. If it’s a larger multi family I’d try to either bring on a more experienced partner or a property manager to help with some of the new bank’s requirements for experience.

Best of luck and keep pursuing your dreams!

@Phillip Christie

You do not need a partner to buy multifamily.

Your lender is looking for experience and probably a pfs to give you a term sheet.

Lay it out for them. Get the t12 for the property your trying to acquire. Use that to create a proforma for the property on the loan you seek with them. List the management company you are going to use. If they have yet to have you do a pfs , google it and include in your “resume”. Buying a 1 million dollar apartment complex is the same analysis as buying a $100000 single family house. If this is a broker or hard money company they are looking for your experience level to see what tier you’ll fall in for funding. Go check out the local credit unions by the property and check them out. They probably be at 80% ltv on a 20/25 year amortization and a 5-10-15-20-25 year term.

Good luck

Sounds like you need another lender. They're already looking for excuses to decline.

That or THEY have limited / no experience in commercial lending. 

Of course, if you could show them at least some education on commercial multi-family, that might help as well. I know a good source for that.