How Can I Make This Work?
This sight has been extremely helpful in teaching me more about REI and I need some more advice. I have found a 108 unit apartment complex with an assumable first loan of 5M with 2.5M down. Here are the specs: Gross income- 1M Expenses- 400K Net income- 600K Loan- 340K Cash Flow- 260K CAP Rate- 8.4% What would be the best way to approach this deal and avoid the down payment. I appreciate your advice and look forward to your replies. Jeff
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What you can try is to convince the buyer to carry a 2nd equal to 30% of purchase price. The bank will finance 80% of the 5Mil. and create a first Mortgage. The seller would take a second for 1.5 Mil. Most banks will view this as 100% LTV loan and thus it makes it very hard to get.
Most brokers and bank will tell you it can't happen. You would have to bring them the signed P&S and then let their GREED take over. You would still need to come up with closing costs.