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.
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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.