All Forum Posts by: Tim Gathers

I'm currently looking into my first apartment deal, a 10-unit apartment in the Detroit area, but am having a hard time finding good financing terms, due to the relatively small amount of financing I'd need, which is about $350,000.  Some lenders tell me that the loan amount is too small for them to deal with.  Other lenders are willing to consider the deal, but only want to provide up to 15 year amortization schedules, which puts a big ding in the cashflow.  I did find one lender that was willing to do a 30 year amortization, but wanted to charge as high as 8%.

My ideal loan would be a fixed rate loan with a minimum 20 year amortization schedule (25 years or more would be better) with an interest rate of no more than 6.5%.  My credit is excellent, and I would need between 70% to 75% financing.

Any referrals to reputable lenders who can meet these terms would be greatly appreciated!  I'd especially like to hear from Michigan investors or others who have financed apartments in Michigan.

Hi, @Michael Bishop.  I'm definitely not trying to syndicate deals on my own right now.  Wouldn't even know where to start!  At this time, I was just trying to see whether it made more sense to start by buying my own apartments, or start by investing in a syndication deal.

I already have some RE experience, but with SFRs only, so apartments are an entirely different animal as you know.  However, my goal is to scale up as soon as possible, which is why I'm looking at apartments.

@Theo Hicks, thanks for the list!  The time commitment for being an active investor concerns me somewhat, as I do have a family and a day job, so I'd definitely need a property management company to help out with an apartment.  As for syndication, I definitely would not want to start off as a syndicator myself, as no one would take me seriously.  However, I wasn't sure if I should start off with being an active investor or start by participating as an passive investor in a syndication deal.

Right now, I tend to lean towards buying my first apartment on my own, and then looking into participating in a syndication deal later as a passive investor.

I'm currently looking to purchase my first small apartment complex (8-12 units).  Since I don't know much about purchasing such properties, does it make sense for me to be represented by a commercial buyers agent who has more expertise than I do?

I've heard that selling agents may not want to deal with buyers who are represented by buyers agents since the selling agents don't want to split the commission with the buyers agent.

I'd like to begin investing in apartments, and have done quite a bit of research so far.  Up until recently, I thought I wanted to purchase an apartment on my own (8-12 units).  However, I've been talking to people about participating in a syndication deal as a passive investor.

Any thoughts on the best way to start investing in apartments for a first-timer?

My goal is to ultimately match my day job income in the next few years.

Thanks, everyone, for the replies and referrals!  I'll try to reach out to you individually.

Hi, everyone.  I'm a part-time real estate investor in the Detroit area who is looking to get into multifamily investing (10-20 units), with the goal of making my first purchase this year.  I'm interested in meeting up with other Detroit area investors who are already investing in multifamily units in this area.  I've done lots of reading and research (including on this forum), but I'm looking to network with some real people who would be willing to share their experiences with me.  Thanks in advance!