I have liquid capital, and a lot of it.

I have liquid capital, and a lot of it.

I have $150k liquid funds available to comfortably use, significant equity in some rentals (but no lines of credit open yet), and a TSP account I could borrow up to $50k from with little penalty other than to pay myself back with 1-2% interest.

Landlord was retiring and liquidating portfolio How did you finance this deal?

Landlord was retiring and liquidating portfolio How did you finance this deal?

Hi, I'm a newbie trying to get into multifamily rentals with a partner, and have a couple of questions:1) When you buy a small commercial multifamily property (say 50 doors or less), how much in liquid assets does a lender typically expect you to show, in addition to the down payment?  

Which Lenders to get: private, hard money, your own liquidation.

A pre-approval will often be based on things like:- The purchase price of the property- The as-is value of the property- The renovation $ amount- The ARV (after-repair value)- Your liquidity- Your experienceIf you are applying for "sight-unseen financing", then it is also possible to get approval without property access.To my understanding the loan will be based on the asset, but in order to even make an offer on the house they want to know that you can get a hard money loan.Regarding the first part, that's not entirely true.

So what we did is have them sign a 6 month lease (they were month to month at the time) to give us time for our first property to build up its own reserves, and build our liquidity to build up for updates to their unit.We just sent them the renewal agreement which increases their rent to market rate.

They are less scary than jumping up to a more valuable property, but the gains to be made by qualifying for a Small Balance Loan or something similar is such a needle-mover than it may prove worth waiting for, while building highly-liquid equity in single family.