Financing a 17-unit Apartment Bldg - Posted by Brian M. Powers(MI)

import · July 18, 2001, 9:53am

Posted by Ronald Watson on July 19, 2001 at 21:19:27:

try going to a small bank with an outline of what your wanting to do.
and ask them to loan the money based on appraised value,i’ve done several that way.

import · July 18, 2001, 9:53am

Posted by Brian M. Powers(MI) on July 18, 2001 at 09:53:04:

3 partners and I have put an offer, and it has been accepted on a 17 unit apartment complex. It has 1- 2BDRM, 16 1-BDRM, and 2 commercial units. The offer was accepted for $100K. The property is beat up but is 75% rented right now and brings in $3800. As-is, the building is worth about $200K. After we updated the building and all units, it would easily appraise for $400K. It would take about $120K-$150K to do the updating. After updating the complex and raisining rents to be in line with market rents, we could have $6500 in rental revnue at 95% occupied.

We are running in to all kinds of road blocks with the financing. $100K is really not a lot of money considering the upside on this property. We live in Michigan. The property is in probate so any type of owner financing is out of the question.

Please advise on how we can secure some financing on this great potential!

Thanks!
BMP

import · July 23, 2001, 7:47pm

Why is owner financing out of the question? - Posted by Michael Morrongiello

Posted by Michael Morrongiello on July 23, 2001 at 19:47:42:

BMP:
Welcome to the wonderful and sometime difficult world of obtaining financing on commerical multi unit properties.

You mentioned that since the property is in probate, owner financing is out of the question. WHY?

We reguarly purchase Newly created owner financed land contracts, mortgages, etc. that are immediatly converted into a LUMP SUM CASH payout to the property seller and can be often be coordinated so that the funding takes place simultaneoulsy with the sale of the property.

Your estate CAN sell to you, and finance you, and then also sell their land contract to us for immediate cash (which is what they want).

We do this type of funding all the time…

To your success,
Michael Morrongiello