What is a good strategy for financing an apartment complex?
Jun 11, 2009
in
Commercial Mortgage FAQ
I need to get funding for the down payment and the primary mortgage.
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2 comments
tnbroker1 on June 11, 2009 at 9:08 pm
I advise that it is not a good idea to get 100% financing. Sometimes (if you are not a novice investor) it may make sense to ask the seller to tote a note for part of the down payment., But what happens if you get in abnd and have to sell??? The 100% leveraged investor hs to cough up money to sell.
So if you have to borrow the DP, I suggest that you reconsider. Do not put you home up as collateral, unless you are prepared to walk away from it.
Remember that if it sounds too good to be true, it is.
Sunny louise on June 11, 2009 at 9:08 pm
If you don't have the full down payment, ask the owner of the complex to give you 2mortgage and pay him monthly until you pay it off. I did that once. The man wanted to sell so bad, he gave me a 7 year loan at 10%, but that was in 1993. The house needed a lot of work and he didn't have the money to fix it up.
When I sold it, I gave the buyer a 3 year purchase money mortgage and amortized it for a 20 year loan with a baloon payment at the end of the 3rd year. That worked out well, but it may not for everybody.