A question for experienced Commercial (Apt) Investors and/or Lenders:
I can find profitable deals
I have fine sources for downpmts
I have excellent personal credit
I worked my way through high school and college in the 1980s working in Apt Maintenance
My family (parents) owned/operated/maintained 40+ units for 30 years in the SF Bay Area
My question: will my “lack” of direct experience prevent me from getting commercial financing on 8-20 unit buildings? Due to some new-found liberty, I’d like to hands-on manage for a while rather than give up 7-10% to a mtc/mgt company.
Hello, In my experience with HML and commercial lenders, the project is what qualifies you to a lender. Not your experience. You would probably qualify for tradition lending but they would consider your experience. You would need a strong business plan. You would pay more on a HML loan but again, it is based on the project, not your experience. I hope this helped answer your question.
I wouldn’t go HML on this one, due to the high rates,and you have good credit, how good is your credit? Depending on the credit score is whether you could go 100% LTV do you have any properties you could cross collateralize if it’s not high enough? Also what do you have that you could put down? 10%??
Also, Did you assist your family in Management of the 40 Unit? IF so you could claim that as experience also.
Firstly - if you are prepared to cross-collaterize the deals then you can go with a conduit/wall street lender who would lend at that leverage point all in a first lien mortgage (at about 5.25%). Alternatively you can go to a life co. lender who would not be as tedius as a conduit lender but would also not have as good rates.
Secondly - your credit may not be an issue with these lenders. Good Luck.
