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