Posted by Clair-MO on July 12, 2003 at 13:34:19:
Mike, What is the seller willing to carry back in a note if you come up with 5% as a down payment? You might be able to contact a hard money lender in your area if not email me and I’ll recommend a hard money lender, fair enough? $131k for a 7 Units is cheap! Where is the location? Is it in a good neighborhood or appreciating area? I would ask the seller to reduce his asking price by 10% to 5% then add the reduction to pay the closing costs if any money is left you will receive it back at closing.
looking for financin - Posted by mike
Posted by mike on July 12, 2003 at 12:38:13:
I have a 7 unit multi-family property in Maine that I am looking at purchasing, it is listed for $131,000.
Here is my question, I only have about 5% for a down payment does anyone have financing for this type of deal, my credit score is about 615.
Here are some details:
Annual operating expenses= $20,460
If anyone has financing for this deal please get in contact with me about the financing details.
Re: looking for financin - Posted by dell-ohio
Posted by dell-ohio on July 13, 2003 at 09:55:07:
In my experience banks finance these kinds of deals at 80% of appraised value or 80% of purchase price which ever is less.
How to come up with the 20%? A couple options.
Have the owner carry the 20% down. Talk to your local banks and find someone who will write loans like this.(save your cash for unforseen things)
If you have another property with equity. Have the bank finance 80% against the building being purchased and a 20% second mortgage against another property with equity.
Bank loan for 80%, seller carry 10%, borrow 5% from a friend to add to your 5% to make the difference.
A lot of banks will finance 80%, seller carry 10%, owner 10%. Talk to local, regional independent banks making commercial loans and ask them what they are willing to do.
4 Partner with someone, do this only as a last resort or if the partner can provide valuable experience that you want.
- Hard Money Lender, killer interest rates
We have financed three similar properties since jan. One a 5 unit, one six unit and one 13 unit. We have not put up any money on either of the units. On one the owner carried the 20% down payment. The other two we used equity in other properties.
Re: looking for financin - Posted by Daniel R. Fortney
Posted by Daniel R. Fortney on July 12, 2003 at 19:17:26:
Have you thought of bringing in a partner on the deal?