Need Help Financing 6 Unit Apartment Building
Hello guys and gals, I have a property in which I need to obtain financing for. It is a 6 unit student rental, with 18 bedrooms. The building can be obtained cheaply and there is already a group of students who are willing to sign leases for next June (the building is currently fully occupied, but with below market rents). How should this be financed, because I have the down payment money but no income. I am a student, but I have my father and uncle who are willing to sign for the property, togeather they have more than enough income and great crediti scores. I have an LLC already formed but I have been calling mortgage brokers and I have been told that since I have no experience managing properties they cannot give me a loan to my LLC. What are my best options? How should this be financed, what would be a good rate to get on the financing? Any help or direction would be greatly appreciated. Thank you very much.
Two ideas come to mind.
Try FHA, or if ur uncle or father are veterans, suggest they buy it VA.
Mike
Thank you lassitermarketing. I appreciate the info. How much down do you usually need for a commercial loan? I heard as much as 30%. When applying for the loan, do you have to provide anything more than you would for a rental property loan? I heard you have to provide proof of the profit that the building will make. Where do u normally get listings for commercial property, apartment buildings in particular?
Thank you so much for all the input. I have been hearing that alot lately that the profits do not seem to be worth it with larger multi unit properties. I will still look into this more and let everyone know how it goes.
Oh and what you normally provide is:
2 years taxes - business and personal
Credit report
Financial statement
Last 3 years operating income statement
Rent Roll
I was under the impression that a commercial broker could origniate/refi commercial loans anywhere. Or, Laurel, are you a direct lender?
The short answer is...... the property qualifies for the loan. Multi-family properties you will find are over priced in some markets and cash flow in others. I have found that there are a few states that are much better than others to find properties that cash flow. I
Good Luck,
Robert
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building investment teams for success[ Edited by commercialking on Date 01/05/2007 ]
Thanks Roberth. Im starting to realize the larger units are not making that much money .The numbers just arent that good. Do you know of any properties in NJ? I would have no problems doing the financing through you. Let me know.
Wht is the loan amount going to be? I have a great new construction program but the min loan amount is $5MM.