Need apartment financing... - Posted by Marc

Posted by BWHITE on June 29, 2001 at 16:51:09:

Marc, I may be able to help you. Provide me with a fax number and I will send you the info you will need to complete the process.

Bryan White
BSCG Solutons, LLC

Need apartment financing… - Posted by Marc

Posted by Marc on June 29, 2001 at 12:45:44:

I have had an offer accepted on a 13-unit apt. building. Before I visit my local banker, I would like to see what the financing options are from those brokers who visit this group.

This will be my first multi-family investment property purchase. There will be three partners on this venture, including myself. FICO’s on each of us are excellent. One of the partners is co-owner in another building. We all have substantial cash and/or equity in other properties.

The building is comprised of 13 2BR/1BA units located in Canby, OR, a small town 20 min. from Portland, OR. It is in excellent shape with no known problems. Fully rented; managed off-site professionally. Purchase price is $585,000. Seller is willing to carry back a 2nd for 10% of the balance ($58,500) at 10% interest, 30 year amort., 5-year balloon. If the first was a a traditional loan for 75% LTV at 8.5%/30-years, the COMBINED debt coverage ratio on the property would be 1.14 and the ratio on the 1st would be 1.31.

So, here’s my question: We would like to get into this building for 15% down, as in the scenario I described above. Are any lenders willing to take a 75% first on such a building? My local banker will do a 70% first all day long, but not 75%.

If you HAVE DONE a similar deal (with a 75% 1st with total LTV of 85%) and feel you can do it again for me, please let me know.

Thanks,

Marc Coan,
Portland, OR