Posted by Bill Jacobsen on July 30, 2007 at 12:16:23:
The most recent 12-plex I purchased was owner-financed. I put up $75K and the owner carried $469K for $2K a month. That works out to 5.12%. There is a balloon in 2.5 years. I have put an additional $40K in repairs and already have an offer of $725K. If the sale goes through the total holding time will have been 6 months.
Don’t overlook seller fainancing.
Bill
Multi Family - Posted by Jeff- MI
Posted by Jeff- MI on July 30, 2007 at 11:33:01:
I need some real world advice on purchasing a 12 unit apartment building. I have been trying and trying and trying and … (well you get it ) to break into r/e investment. I have had several properties under contract and for one reason or another they fell through. I am about to close on a SFH that my wife and I will owner occ. It is an REO and we purchased it at 60% ARV.
Once I close I will have better credit and access to $50k in equity (and still keep the house at 80% LTV). I also have an investor that is willing to invest $40k on a rental poperty.
My question is what is the best way to finance a multifamily property? There are several properties listed ranging from 8 units for $400k to 22 units for $850k. Would I try and get conventional commercial funding? If so what are the requirements? I have a very high DOI (especially after the purchase of the house). Is hard money an option for multi family?
Any and all suggestions greatly appreciated and if anyone could reccomend any helpful resources (books, programs, etc) regarding commercial financing that would be great.
Thanks … Jeff