20 year old beginner. I want to start buy purchasing a small apartment how should I go about this. ADVICE

I want to purchase a build with at least 4 units. I am just confused about the whole finding financing process. When I find a property I am interested in should I get all the numbers first and then look for financing. And then make and offer. If someone could just give me some advice that would be great.
In Buying Property - Asked by allieu b. - Oct 7, 2008
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Answer(s)

Chuck S.
Broker/Agent
Frisco, TX

a 1-4 unit complex is residential, not commercial so conventional financing is where you would get funded. What state?

Oct 7, 2008
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Andrew G.
Lender/Mortgage Broker
Sarasota, FL

If it is only 4 units, a community bank in the area of the property should be able finance it. As part of your due dilligence/research, you should be requesting income statements and a rent roll on the property. Make sure you will have a good debt service coverage (NOI/yearly debt service costs). Then approach the community bank for assistance. They will want to look at your personal cash flow after that.
One other thought, make sure the rent roll shows long term tenants in place. You will also want to make sure the Tenants are financially strong, aren't late on payments, and aren't about to leave. Hopefully the leases were written with the owner able to request the Tenant's financial statements otherwise it will be difficult to tell if the tenant is making money or not (for privately owned companies anyway).

Oct 7, 2008
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Andrew G.
Lender/Mortgage Broker
Sarasota, FL

P.S. The Tenant financial section of my answer was for if the property is commercial in nature. For a residential quad-plex, ask for an aging report showing if the tenants are late. The seller will probably then verbally tell you, but I'd prefer something in writing.

Oct 7, 2008
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Conway R.
Owner/Investor
Napa, CA

I only sell multifamily real estate. Get educated read some books check out some blogs like www.MikeBolen.com and then find a competent real estate specialist who works multifamily to guide you. I have a referral network all over the country just let me know where and I can help you get connected.

Oct 8, 2008
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Tai L.
Broker/Agent
San Diego, CA

There are classes in the community relating to commercial real estate. I took one for like $39.

May 23, 2009
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terrance w.
Property/Asset Manager
Olympia, WA

Hey tai
Can you contact me at terrytoe@gmail.com and let me know more about this class that you took the classes in the community relating to commercial real estate for $39.
thanks

Jul 13, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

As others have suggested, taking some classes is a good start.
.
.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
greg@nnnbrokersusa.com
http://www.gregorygarver.com

Jun 12, 2011
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