Hi I was wondering if anyone can do 70% financing with the seller carrying 30% on a 60 unit apartment complex? Thanks
So you have no money or collateral to put up?
how’s your credit?
and what’s the cap rate?
It’s not that easy. We would be irresponsible based on the information provided to say, “sure.”
There is no ‘product’ for such a purchase, but lenders will make exceptions if there are compensating factors.
Please provide more information.
cap rate is 8.22 , the purchase price is 1.7 ,90% occ
So based on the price and CAP the NIO = $139,740
70% is 1,190,000 @ 7.5% 30 yr = $99852/yr
30% is 510,000 @ 7.5% 30 yr = $42792/yr
Total Debt service = $142,644/yr
Negative cashflow of ($2904/yr)
Unless you are able to get significantly better terms and rates then this appears to be an awful investment, for cashflow anyways.
I would say you need a cap rate around 10 and up if you plan on no money down.
IM LOOKING AT A 16 UNIT ,ASKING PRICE IS $399,900K WITH A GROSS MULTI OF 5.00 . GROSS INCOME IS 67,200 AND NET ANNUAL INCOME IS 36,700 WITH 85% OCCUPANCY . IS THIS ENOUGH INFO FOR GOOD FEEDBACK?IM NEW AT THIS AND WOULD LOVE SOME GOOD SOUND ADVISE.
Net Annual Income meaning Net operating Income? i.e. Income minus expenses? How much are you putting down? Also, take into consideration that sellers covienently under estimate all the numbers.
But lets say it $36700 NOI and you don’t put anything down. 100% financing on 399,999k @ 7.5% 30 yrs fixed is $33,564/yr.
If all numbers are correct your cashflow would be $3136 per year or $261 per month. Obviously the more you put down, the more the cashflow/return etc etc. But you get the idea. Researching all the numbers would be key, and making sure all expenses are accounted for.
I m curious as to how did you get the expense,income from the apt unit ? I assume you ask the seller. Do you verify these numbers making sure they are true expense, and income ?
Yeah ofcourse, normally you will see and income/expense statement or a Profit and Loss statement package from the seller/broker. These are the initial numbers you have to go by. But once you are in contract that’s when the real work begins. You must do due dilegence on all the numbers. You put in the contract what they must disclose such as their books, P&L statements for past years, utility bills, property tax and insurance docs etc etc.
Did you consider a joint venture? I might be able to help. Offline me.