Re: funding for 9 Units in Dallas, 15-20% down - Posted by wes
Posted by wes on July 26, 2005 at 19:20:59:
You have alot working against you!
9 units means it is a Commercial loan.
Putting 15-20% down, means you need approx. 80-85% financing (without a seller holding a second). Since “most” commercial lenders will not lend more than 80%, you are already asking for about the maximum loan amount you could expect.
To be able to qualify for the maximum loan amount, most lenders require at least 80% occupancy of which this property is at 66.66%. That means that since the property does not meet the qualifications of most lenders, you are not going to get the the best rates or terms.
Then there is the fact that there appears to be almost no positive cashflow, the property needs some repair work and you want a Stated income loan…
Most likely you are going to get few real offers and you will probably not be satisfied with the rates and terms offered.
But, if you truely believe the property can actually turn out to be a good investment, you should basically take what you can get as long as you can get the property in your name.
Later, if you are successful in turning it around and stablizing, you will then have options.
This does not appear to be an easy loan and in fact I doubt I could get it done for you as stated.
Therefore, my best advise is Do Not Pay anyone an advanced fee that “says” they can get this loan done for you.
Talk to everyone but be diligent in trusting anyone…