Can this Multi-Unit be financed - Posted by Joe

Posted by pboone on March 23, 2000 at 23:01:10:

This particular seller sounds like the millions of sellers who are motivated based on conditions. That my friend tells me he/she is not very Motivated but he would like to sell. Heck I have many properties I would sell 5% down

Can this Multi-Unit be financed - Posted by Joe

Posted by Joe on March 23, 2000 at 14:24:42:

Maybe those of you with know how can tell me if this can be done and how.
I found an Apt Bldg 18 units through an agent ,the owner is asking $700,000.

I put together a cash flow analysis and came out with a positive $15,500 a year using the Sheets method.

The owner is motivated so he will finance under these terms:
$40,000 down cash,( he said it must be in cash)
Balance at 10% over 30yrs with a 3 year balloon.

Can I get a mortgage co. to finance the $40,000 so I can give him the cash he needs?

I do not know what it appraises at and I have not done the comps yet because I don’t know if I can get the $40k down.

Will a mortgage company finance something like this?

I found a motivated seller (this bldg is not on the market just someone the agent knew through another agent) how do I have him sell to me under these terms.

Hopefull someday I will have the knowledge that most of you do and I can help someone else.

Thanks, Joe

Re: Can this Multi-Unit be financed - Posted by GIO

Posted by GIO on March 24, 2000 at 19:15:43:

NEVER yet purchased a multi, and never read sheets but i have seen deals on 4 fam that produce $12k/yr, a regular bank or almost anyone (offer a hard money lender 15% with a baloon in 5-10 years) may be able to lend as a 1st morgage the $40k since it is only 5% of fmv, but if done thru a bank they may want to see you ahve some risk. i would try to get the price or the interset rate (9%)lowerd a bit more - sorry i could not be more help. there was another post today with a multi fam question- check it out, also see the article on creonline titled “crash course in commercial r.e.” Good luck