Hi,
anyone know of a reputable lending co. that would lend up to 95% of a 6. mil $ project?
our credit scores are low to mid 600’s.
We have landlord, owner experience. We have 29 units currently and are looking at a 248 uni complex. It’s a jump but I’m confident we can do it.
We both have jobs but we are self employeed–him a store, me a daycare- which I will consider selling if this project gets underway.
I have a b.s
We make about 100+or-/year.
I don’t have all the stats on the property yet.
I am not positive on this because I havent done any commercial buildigs yet (5units and up) but I dont think they have an ltv that high for commercial property.
This might be a little out of your reach with most institutional lenders as you don’t have a track record with anything near this size. But lenders that go up to 95% LTV do exist, even more so than smaller residential properties. I will send you a couple links to your private messages (I don’t do free plugs). This property might be a little small for most mezzanines but a second of some type might also be in order. I would not go after this property unless there was significant value- creation to be had. Most lenders will feel the same way.
PM inbound.
Another option is to consider using FHA 221 loans for apartment construction. You can get 90% LTC plus there is a possiblity to get a 10% developers fee.
The are some pros & cons to using this loan program, but overall it is a good program.
Let me know if you need additional details.
Regards,
Patti
Thank you everyone for your responses.
I am discussing this with my husband and its his turn to make the big financial decision and he’d rather pay off our house. Like I said its his turn and I respect that.
That doesn’t mean I have given up, I’m just letting him think on this for a few days.
Danny it is bigger than anything we’ve done to date but I finally have a great crew from our other properties and I would probably sell my business to manage this property.
There is an awesom chance for value-creation, that is why I am so interested in this particular property.
It is in an upper middle class community 248 units some of which are 2 and 3 bedroom townhouse, the average sale price per unit is about 23,000. Unheard of here unless we go way down the road to Flint or Detroit and its still a good price!
Well, I will keep everyone posted as or if this transpires!
Wendy
Wendy…does he have a job? Here’s an article about that:
http://articles.moneycentral.msn.com/Banking/HomeFinancing/DontRushToPayOffThatMortgage.aspx
Hi,
My husband employed? Yes good solid business. Self employed as am I.
He owns a convenience store and I own a child care center, although I rent the facility. But like I said I would consider selling my business as I am sure I could manage the apartments full time.
It may be more cost effective to hire a office manager as apossed to me selling but I am to much of a control freak to let any reins go.
Wendy
Did you read the article?
Keith
oops nope, will do now
Keith,
yeh, There are so many ther things I would rather do with the money, #1 buy property in Mexico, #2 invest in the apt. building we’re looking at.
I will have him read this article but like I said, it’s his turn, he didn’t say anything when it was my turn, so I will hint around, bite my lip and if nothing else, next time we run into some $ it’ll be my turn.
Wendy :
I recomend you read how Robert Kiyosaki (author of Rich Dad Poor Dad) did it. Refer to his book , " Retire Young Retire Rich" , pgs. 162 - 166.
Thanks, its off to borders in the a.m.
Wendy
Yes! What is DCR? Do you have money to pay for closing cost?