Posted by Frandyco on June 29, 2003 at 17:24:42:
Oh, I forgot, the first one who do 100% on 1-4 Unit will do 90%LTV or go a little higher for qualified borrower.
What 's the Max loan % for Apartment blds? - Posted by Cary Gibson
Posted by Cary Gibson on June 23, 2003 at 20:08:45:
Hi all,
I’m looking at a 45 unit apartment complex in the Seattle, Wa area for roughly $2 mil. The seller is willing to take up to 25% or so as a second (or even do more as a first). I, of course, have essentially $0 to put down on the deal. I have, however, made sure the numbers would work, depending on the financing costs etc and assuming 20% vacancy, +10% more on expenses from what they report etc. (it ran at 12% or so vacant last year). Basically the seller has been liquidating his assets and is slowly getting out of the business.
My questions are:
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Is it possible to find a lender that will do the deal and if so can you point me in the right direction?
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In general, what is the maximum % lenders will provide for such properties and do they REQUIRE the borrowers to put a certain % into the pot?
So far, the lenders I have come across want 15% - 20% down from me, regardless of how much the seller takes back in a second and regardless of any numbers on the property.
I do have other properties but they are basically fully leveraged at this time.
Thanks for you time on this.
Cary K. Gibson
Re: What 's the Max loan % for Apartment blds? - Posted by Frandyco
Posted by Frandyco on June 29, 2003 at 17:22:50:
Currently I know lending source do 1-4 Unit 100% LTV, and another lending source for almost all types of properties do 100%LTC, but LTV not more than 80% for projects above $2M. Also some other financing tech to do 100%. But normally suitable for large size commercial properties from $1M and up.
Re: What 's the Max loan % for Apartment blds? - Posted by cam
Posted by cam on June 23, 2003 at 20:23:07:
The borrower will always be required to put up at least 5-8% of the lesser of purchase price or appraisal + closing costs. You can use a mezzanine loan or seller second to lower your downpayment, but you will always be required to put some money down.
See the posts under the title “Need lender to do 85/15/5 financing” for some more information.