PLEASE TAKE A LOOK, MAYBE YOU CAN HELP !!! - Posted by sev paso

Posted by Ed Garcia on March 08, 2001 at 02:35:58:

Sev Paso,

Your post was not long, so don’t worry about it. What most new investors to multiple units don’t realize, is that multiple unit lenders look for experienced borrowers. By the way an investor structures their deal, you can tell their experience.

I’m sure you realize that New Jersey is one of the states that I don’t lend in, although I may not need a license to lend on multiple units in that state.

When you do a deal, you have to give the lender something to hang their hat on. Here you are with less than perfect credit, and want to get into the deal with no or little money out of you pocket. Your deal is average at best. I don’t agree with your NOI, but using you NOI the deal is only an 8 Cap. You say you’re looking for a lender that will do the deal with 20% down, that part should be no problem.

Serv Paso, you also say that the seller only want’s to carry between 4 and 8%, If you intend to do the deal with no or little money down, then why did you ask about a lender who will do the deal with 20% down. What I would suggest at this point is for you to go to Caldwell Banker, Marcus & Millichap, or one of the larger Commercial firm in the area, and ask them who they’re using for financing multiple units.

They should be helpful in turning on to a respectable lending source.

Ed Garcia

PLEASE TAKE A LOOK, MAYBE YOU CAN HELP !!! - Posted by sev paso

Posted by sev paso on March 07, 2001 at 15:03:20:

i have found a 12 unit complex. 3 four unit homes and the seller is somewhat flexible.

  1. 4 unit’s all 2 bdr = gross income 43,452
    expenses = 15,588
    NOI = 27,864

2.4 units all 2 bdr = gross income 42,708
expenses = 15,900
NOI = 26,808

3.4 units all 2 bdr = gross income 52,800
expenses = 15,900
NOI = 36,900

the asking price of the property is 799k. the seller is looking to cash out on his equity in the property 400k. he indicates he is willing to hold a long term 2nd for a small amount ( between 4% and 8%). my credit is not great but i make a good yearly salary and am very liquid right now. im looking to structure this deal with as little money down as possible if i can. if not does anyone know where i can find a lender in new jersey to do this deal with 20%. 1 other question does the numbers on this deal make sense?

sorry the letter was so long just wanted to give stats.