Secondary Financing-HML?

General Real Estate Investing
1

Does anyone know if it’s possible to use an HML for the down on a 5+ unit building? If so could you PM with some names of reputable HML?

Thanks,
Rosanna

2

What’s the value? What’s the amount borrowed?

3

Thanks for replying Rich. This is actually just a hypothetcial question right now. I don’t have any particular property right now just want to know if it’s possible to do this if the deal is good

Rosanna

4

I think a big issue is that the HML won’t want to be in second position. The other issue is being 60-70% of value or less for them to do a deal.

5

rose1,

A HML will finance the entire deal (100%). That’s much better then financing a down pmt. Are you finding a property that isn’t a good enought deal to meet the 65% ARV requirements of a HML, and that’s why you want the down pmt money?

If you give us your GOAL, we can better find a solution.

6

Thanks for everyone’s reply. I am new at this so I guess I didn’t think this through. It’s great to have people to go to to bounce things off of. IronRange, you are right that I should be going after deals that are good enough to be financed 100% through an HML for purchase, rehab. I am trying to purchase either 3-4 families or commercial properties with as little down out of my pocket as possible. Thanks for the responses.

Rosanna