Posted by Ed Garcia on March 08, 2001 at 01:57:53:
Yes 100% financing is possible but not likely unless you have the right deal, lender, and borrower. In California, when it comes to Apartment buildings in Long Beach. Long Beach is not considered the end of the world, but you can see the end of the world from there.
I’m sorry to say it Carlos, but Long Beach has a bad reputation. World Savings and Loan won’t even get in their car to go look at units in Long Beach.
Lets look at your numbers. You say you can buy between $280,000 and $310,000. Lets say that you’re good and get them at $280,000. You say that it will take 50 to 60K for rehab. Lets meet you in the middle and say $55,000.
Now without any other cost, closing, holding, expenses etc you’re in the deal $335,000
If they’re worth as you say $425,000, you in the 78% LTV, which would be a high LTV for Long Beach. If you ad in the cost that I left out you would easily exceed 80%.
A multiple unit lender in that area would want to do the deal as a rule of thumb 70% LTV. Carlos, lenders are not suppose to redline, but they do.
Call me at (909) 944-0199 and we can talk. As my old friend Terry Vaughan would say, I’m a player and I’ve got hard money.