Aquiring DP W/Assumable Mortgage On Apartments
I have just sent in the paperwork to form a LLC. The property I am looking at is a 300Unit complex listed at 19M, 9.5M is assumable with a 6.14% 120 month w/240 amort. with a 9.5M downpayment. Should I consider using the same lender as the original using an interest only payment until the original expires and then refi the 9.5M DP for another 120 months. Any advice would most helpful.
-Jeff
Commercial lenders are going to lend on 75% LTV (using the LESSER of the purchase price or the appraised value). You need $4.75M to do this deal conventionally.
Find out if the seller is willing to carry 30% or more and you may be able to do something with it. If this is your first Multi deal, you're probably biting off more than you can chew.