Real estate gurus! help!
 

ok, so ive recently came across a very big big big deal that i would like some opinion on.

Ive got a seller who wants to sell their properties, im talking about over 100 units in different locations.

Now i got the price and what not, but i want to line up some financing.

my question is, who do i go for financing? i know the big 6 banks wont touch this.. so what are my other legal financing options? lol

Talk to Dino from Brooklyn, he'll lend you some money, but he wants something in return ;)

go to a mortgage brokerage

Nice call. If you have ANY contacts in the Mortgage Brokering realm - I suggest you use them, immediately.

http://forum.richdad.com/forums/tt.asp?appid=17

DH

If say you know of an apartment complex thats selling for about 500k, how much would bank expect you to invest of your own cash to loan you the money?

depends. i know that in my region, the big banks dont like taking multi units for rentals... i think many of them move it to commercial financing where u can expect to pay at least 33%

Damn 33% is huge, no way I could afford that :(

depends where ur from, im from montreal.. i think its different in the states.

theres always owner financing.. just give him a higher % than if he was to put that money in the bank.
just make sure ur rentals cover both payments.

Do you have credentials? Have a holding company allready? Don't start with something bigger you can handle:)

credentials? hmm, cant say i have any RE oriented, but i do know alot of bankers, notaries and evaluators.

ive figured a # company would work. This deal is between partners as well. but i just want to find my financing and what nots before thinking more about it.

Chowda hit me up on ICQ, I might be interested. :)

DH

Chowda - hit me up on ICQ - 190-272-140 - I used to work in the Mortgage department for CIBC - I could recommend someone for you :thumbsup

over 100 units. how much?

The better question might be why they want to dump all their properties in the first place (click)

bump for ya chowda

currently floating around 6mil. 6.5mil
he's not desperate, but he wants to let go of it.

city evaluated at around 5.3mil

A mortage broker would be able to hook you up with private investors, if you qualify. This might be too much to handle if this is your first deal. Where is it located? How many buildings total? Any building over 4 units fall under commercial and you're looking at 20% down minimum.

The are lots of options chowda. You have lots of trusts and insurance companies that will be more than happy to mortgage these type of properties at a rate less than you think (6.5% or less). Then you have lots private investors that will lend but a higher rate but still lessthan you think.


Hope this helps you a bit.

That's a huge deal if you're not already involved in commercial real estate. That isn't something you're going to get financed on without having a serious investment (25%+) or a track record.

I'd say find yourself a nice 3 or 4 family to start with. Do you understand the headaches of owning rental property? Esp that many units.

wtf Chowda... how much are YOU considering putting is this? btw.. is it really the time to invest in real estate right now.. the prices seems to have reached the ceilling now...

For your situation definately should speak to a mortgage brokerage. I don't know about the investment on your part for this situation or where you live. But here you need to usually put down 20% when you're a new buyer and you already own property.

On a side note - Since you're in CAN and the properties are there, do you need to use only a CAN bank? Or would a US bank be able to help you out?

You need a commercial mortgage broker. Do not listen to these guys about size matters. 100 is not that big. The properties finance themselves. You are not that important. Based on Cash Flow is how much they will lend. Expect 20-25% down.

You gotta shop as many banks and financial institutions as possible and tell then that you need a investor loan. Any good loan officer will find a way to creatively lend you the money you need. Hope you have a lot of money in the bank and a good fico score. I dont know what state your in so its tough to mention who you might go to.
You may need to find a venture capatalists (VC) if you really want this to happen.
ICQ me if you want more details on my contacts in California and Nevada.
Hope this helped a bit

like some peeps have said 25-30% down , and you will need good credit even with that. No lender will give you any money unless you qualify. Rental propertys look great on paper, but there are a lot of headaches involved in running them as well. :2 cents:

well. i am dealing with 20 units currently...all good tenants

in terms of managing it, i would hire a professional property mgmt company.

i can pool together enough for a "down payment" but would just like to see what other financial institutes would offer financing to these kinda deals.


like alex said, i would look into insurance companies.. i hear they like lending to more risky ventures.

have you done anything like this before? if not you might want to start with something smaller to get the feel of it.