Posted by Rob day (NH) on November 09, 1998 at 11:05:03:
Mark,
Finding a lender is always difficult. What is the property worth? Can you go to an asset based lender or can you create a note? Find out if the loan buyer wants a specific payment in mind and see what you can negotiate with the property price. Do you have an appraisal on it. A note buyer may allow you to use your own appraiser and they may be able to help you seeing they are working for you. Good luck!!
Rob
Multi family loan - Posted by Mark (stl)
Posted by Mark (stl) on November 08, 1998 at 22:55:12:
Can anyone tell me where I can find a lender who will give me a higher than normal (70% LTV) loan on a multifamily with more than 4 units. I am looking at an 8 family for $176,000 but quite honetsly even if I had 50K I would not want to use it if I didn’t have to. The seller is willing to hold a second but the few banks I have talked to frown upon this. I was told their underwriters want to see my money in the deal. Any help would be greatly appreciated.
Mark Ottinger
Re: Multi family loan - Posted by Redline
Posted by Redline on November 09, 1998 at 11:11:35:
Maybe you shouldn’t go to a lender.
Get the seller to take back two notes: a first and second. Write the first note so that it is sold at close to give them the cash they need. If it’s written correctly and you have good credit, the discount shouldn’t be too much. They get their cash, and they hold the second for as long as they want. (Make sure: write the second so that you have first option to buy it should they decide to discount it at some point AND consult with a note buyer BEFORE you do the deal to properly structure the first note).
Taking into consideration the discount, you may have to think about what price you’ll offer now - and what price they’ll accept. This can, however also offer a quicker close which is always good.
RL