Apartments- Downpayment &Closing Cost? - Posted by DeeTN

import · May 19, 2007, 8:48am

Posted by Rich-CA on May 19, 2007 at 17:05:05:

Most of the people I know use their own money from a 1031 exchange using a smaller property.

import · May 19, 2007, 8:48am

Posted by DeeTN on May 19, 2007 at 08:48:06:

I have been looking at several potential apartment buildings that I’m interested in purchasing. Thing is, it seems like the best ROI comes from the bigger units. I have recently found an apartment complex that I’m interested in(I have only been doing residential for a couple of years and own 6 properties) - and they want $2.8 million for it. Most lenders only loan 80% of the purchase price, so my question is - how could I come up with the remaining 20% plus closing costs?

That’s roughly $600,000 (if I wanted to go with this deal) and while I do have reserves, I don’t have that kind of money.

I’m still running the numbers and am in the process of obtaining more information. I’ve been given some tips, and I also read about the owner possibly taking back a second mortgage, but even if they did that, that would still leave closing costs which I guestimated would be around $170,000 - $200,000.

Any ideas?

Thanks in advance!!!