Posted by Michael on February 06, 2006 at 24:58:38:
If you have the ability to find good deals and have good negotiation skills then you can put together a package that would be attractive to other investors. I know a guy who used to work for Arthur Anderson as some negotiations specialist (for purchasing or something) that got into real estate after AA went under. He found a good deal on a 240 unit and was able to negotiate it down even cheaper. He put $500k of his own money in it and got 4 other people to put up another $700k. That one did extremely well. About 9 months later he was able to purchase a 220 unit for even better pricing than he did the first one. He got like 10 investors this time and none of his own money, but he automatically gets 10% equity for finding and putting the deal together.
So if you that proven ability, you can use your knowledge to get you involved into such deals.
He’s already close to his third deal, this time on a 200+ unit B-class (as opposed to C-class for his first two.)
I know your question was regarding Multi Million Dollar properties.
However, if you keep your loan amount under $1,000,000 it is not that difficult to get a 90% CLTV (combined) loan.
You can also possibly get up to 95% CLTV if your seller will hold up to a 20% second.
As has been stated, about the only way for 100% LTV is through owner financing.
If a high LTV is a must for you to consider multi units, I would recommend looking in this price range (where your loan amount would be less than $1,000,000) first.
Once you have more experience and hopefully assets, moving on to larger deals is much easier than trying to start there.