Only 20% down payment:
When acquiring a multifamily properties you can often obtain a multifamily with only 20% down payment for apartment loan. For example, the Quail Creek Apartments at 913 N. 72nd Street in Kansas City Kansas could be financed at or below 4.15% on a fixed rate for 10-years, with a 30-year amortization schedule (as of July 2019). Interest only periods could be included with a small increase in the interest rate.
No replacement reserves:
Non-recourse loan for multifamily loan 80%:
These loans would be on a non-recourse basis subject to typical recourse provisions. For example, fraud, misappropriation in proceeds, waste, and environmental as examples. These provisions are often referred to as “bad boy” carve-outs.
Lender can often fix or cap the closing costs for a property like the Hauser Townhomes for apartment loans of 80% of purchase. We would expect to see lender capped closing costs at or below $12,500. Our loan placement fee would be in addition to lender third party costs.
If you would like a free loan quote on the above property contact Mike Caffrey today. Here is what we would need to provide a quote:
- Recent rent roll
- Since the property has recently been repositioned month by month detailed profit and loss statements.
- The anticipated purchase price.
To advance the loan request to an actual loan from the lender include the following:
- Resume on the sponsors/investors
- Current personal financial statements on sponsors/investors
- Loan request, how long of a loan do you want? 10-years? 15-years, with a 30-year amortization? Do you want a few years of interest only?
From the date we receive a full package from the sponsor/investor it takes about 50 to 60-days to close and fund the loan. It is possible to expedite the loan closing process. This often requires paying more for the third party reports. For example of the appraiser bids the report at $3,000 for a 3-week turn around, they might be willing to complete the appraisal for $4,000 with a two week turn around.
If you have questions call Mike Caffrey: 913.402.7077 or email at: Mike@CaffreyLoans.com