Re: Funding Angel - Posted by Nate(DC)
Posted by Nate(DC) on March 13, 2002 at 10:47:31:
Interesting idea, but if you read their website it states that they lend only in the west (WA, OR, CO, AK, UT, AZ, and NV) so they would not be any use to Tracy in Louisiana.
I would ask Tracy: if they apartments are really a “great investment”, I would be surprised if a bank would not lend on them simply because they are currently vacant. Banks, first and foremost, need numbers and need to get comfortable with the big picture. If you have approached banks and been turned down, my guess is you haven’t been able to “sell” them on the deal as a whole.
If that is the case, maybe you need to do more research to be able to sell the deal better. How do you know they will be a great investment? Do you have comparable rent data and operating expense data to support it? What will the rehab costs be? How do you know that? What can you purchase the property for? How do you know that? (see a pattern here?) Finally, what is your experience level. Have you ever done a deal of this type before? If not, do you have a partner or someone else on the development team with more experience?
Finally, why are the apartments vacant, and how long have they been vacant?? If you do not know the answer to this, you may not know the real reason you’re having trouble getting financing. Is there an environmental problem? Asbestos? Lead paint? Is the market lousy?
Just some thoughts for you to consider.
Good luck, NT