Calling the Big Guns - Apartment purchasing - Posted by Jaydee

Posted by Ed Garcia on April 17, 2000 at 10:20:52:


I’m sorry to say you don’t tell us much about your deal.

Deal constructing is important when dealing with a lender.

For starters, when doing Multiple units or Commercial properties, you’re working with a
smaller lending community.

In most cases when dealing with small banks, they will do a 30 due in 10 year, or a 30
due in 7, and of course 15 year fully amortized.
There are lenders that specialize in Multiple units, that are nation wide.
For example, Washington Mutual will have a Commercial department that will cater
to just this sort of financing.

Back to deal structuring. There is a lot a lender will take into consideration when doing this
type of deal.

  1. Age of units
  2. Location and surrounding area
  3. Condition of the subject property
  4. your qualifications or experience with this type of property.

There is more in addition to your financial strength, such as LTV, Cash flow, DCR( debt coverage ratio),
which they usually require to be 1.20 to 1.30, and the list goes on.

Jaydee, there can be compensating factors when doing a deal of this type to which you can show strengths
of a deal in one area, when lacking in another. But know nothing about your deal, I can’t give you any more information than this.

Yes, there is definitely 30 year fully amortized financing out there, but I would have to know more about you and your deal to advise you. I’m sorry to say that I’m currently barred between preparing for my
workshop, and I’m already working with some of the new participants of the workshop. Other wise I would
just ask you to call me. Good luck Jaydee, You seem determined enough not to accept NO, and because of
that, I know you’ll get it done.

Ed Garcia

Calling the Big Guns - Apartment purchasing - Posted by Jaydee

Posted by Jaydee on April 16, 2000 at 20:22:37:

Due to a previous commitment I am unable to attend the Lenders Workshop , and I am sure these questions would be answered there . I have made several phone calls to local banks and it seems none of them make more than a 15 year loan on an apartment complex ( or at least that is what I am led to believe ) Is it possible to get a 30 year loan on such properties ? Another thing I wanted to know was whether the interest rate amongst these banks is negotiable on these type loans ? Bare in mind I do go in 'guns blazing ’ but I also like to be realistic when approaching these guys ? Thanks in advance for all your comments .