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Author Topic: APARTMENT FINANCING?  (Read 1246 times)

Offline cpowell

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APARTMENT FINANCING?
« on: June 28, 2005, 01:28:00 pm »
Hello, I have a question.  I have a deal where I can possibly get a large apt complex for 0 down, but I'm not sure exactly how to structure the deal.  I'm pretty new.  First, if I offer, say, 6M and the owner is willing to finance 35 - 45% of that price, would I be able to pick up a mortgage for 70% of the property value, creating a nothiing down, and cash back at closing deal?  Is there anything that I should be aware of?  Cash flow isn't a problem, because this property will cashflow even with debt service on the full price.  


Also, this is a pretty dumb question, but how do you present your offers?  What for do you use?  I have used a couple different ones, from an actual buyers contract to an "Intent to Purchase" that I found.  I'd like to standardize my procedures with a professional document.

Thanks for your help!
Chris

Offline fito41

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Re:APARTMENT FINANCING?
« Reply #1 on: June 29, 2005, 10:55:51 am »
Most commercial lenders will not allow a 100% CLTV, even with a seller second. They insist that the borrower brings cash to the table ( At least 5% ), and as a result, share the risk.
Also lenders can provide either an in-house
90% LTV (80/10), or 95% LTV (70/25 or 75/20), whereby the seller carry the second

Some lenders also require no due diligence fees, no upfront fees.

« Last Edit: June 29, 2005, 11:14:35 am by tedjr »

 




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