All Forum Posts by: Account Closed

Hard money lender VS bank, they have different ways of risk management. Banks look at a business entity's history/asset and owner's credit and financial situation to determine how much money they can lend. Banks have so much business and not have a specific risk management way designed only for real estate investment. While hard money lender specializes in real estate and they know how the fix and flip or other real estate investing works. They can assess how profitable the deal might be. So as long as the deal fitting their criteria, they are fine. So new LLC without history does not matter. Hard money lender looks at the specific deal. Hope this helps!

Hi @Adrie Moses-bailey, PMI amazing spaces is a good property management company that I know. I will PM you the contact.

@Mike Adams Is the property in good condition? Do you need renovation? What is the tax, insurance, and HOA? If the property needs renovation, a fix and flip loan is good and the rent income does not matter. If you are looking for a long-term loan without renovation, as long as the DSCR is greater than 1.1, you can qualify for a loan.

For stabilized (>85% occupancy) 6-10 units multifamily, you may get up to 75% LTV, 30-year amortization and 30-year term, interest rate around 5-7%. Usually there is a prepayment penalty, could be 5-4-3-2-1 or 5-5-5.

You can apply multiple hard money loans at once. You may need as low as 10% down and 100% of the rehab can be financed.

@Mark Zajaczkowski This is standard all states.

@Mark Zajaczkowski If you are acquire the business and continue to run it, an SBA loan would fit. You need as little as 10% equity injection. 

@Anthia Rymer Commercial loan more looks at the profitability of the property, so new investor is not a big issue as long as you don't start with the big multifamily project. How many units and what price range are you looking at now?

@Christopher Vu how much is the purchase price? I would say a 7(a) loan is more appropriate if it is less than $5 million.

@Christopher Vu If you are planning to move in with your own business and occupy at least 51% of the space, you can use SBA loan to purchase the whole property. The down payment could be as low as 10%.