OfflineGood afternoon! I have all of the pieces of the puzzle in place except...for the financing. I have identified several great properties but the one that is a "no-brainer" is the 12 unit property that generates six thousand a month in rents with expenses (before debt service)of 1300 dollars. With some rehab work the total cost of the property would be 160,000 dollars. Because of my divorce my credit is shot but there had to be an investor that can see the security in loaning on this property but people either want to see some"skin in the game" or aren't interested in investing in Michigan. Any advice would be appreciated. Thanks, Brad P.S. forgot to mention the revenue doesn't include laundry room income (nearest laundry facility is 5 miles from the property) and the units can be sold individually as condo docs are already in place....appraisal came in at over 800,000 dollars. Thanks, Brad
multi-family
Posted on: Wed, 12/29/2010 - 22:40
My understanding from my RE Club is that anything over 5 units is considered commercial.....so you simply go to a bank, ask for the commercial loan division, and have ALL of your supporting evidence and they make the loan based on the DEAL, not you or your credit. As long as it is positive cash flow, they will loan the money. Just last month two people in our club after taking a workshop offered by the club got offers and closed quickly on multi-units.
Good Luck,
Chris
If those numbers can be verified, there will be plenty of investors and lenders willing to take a chance on that one. Just make sure you keep calling, and making as many contacts as you can. The money is there. Check with local investment clubs, commercial real estate brokers, and accountants and attorneys. Someone will want to be involved in that.
You may lose some part of the deal if you have to partner with someone, but that's ok, It looks like there's plenty of cash flow to go around!