New Commercial Investor w/ 690/700 FICO (How to get purch $$ for down payment)?

I am a residential investor that is moving into commercial multifamily investing but I am having trouble coming up with purchase money. I want to tie up a 76 unit property in SC at 100% occ with 10.6 cap but need help finding the 15-20% down. I can come up with the due diligence fees. the purchase price is 2.6M. Anyone have suggestions on how to do this. Thanks
In Buying Property - Asked by Rocquel G. - Oct 26, 2008
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Answer(s)

Anna S.
Broker/Agent
Jenkintown, PA

In all fairness your agent should have a solution to this. I can recomend a bank that may take a look at this.

Oct 26, 2008
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Ryan W.
Broker/Agent
Thousand Oaks, CA

I would be interested in finding out this information as well. There are so many commercial deals out there now. If you could find a way to borrow the down payment, then the ski is the limit. Is it possible????

Oct 26, 2008
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Scott W.
Owner/Investor
Colorado Springs, CO

There are a number of ways to by the property outright - no financing or to borrow down payment. Consider an SEC Reg D syndication which can raise all of the money you require and buy the property outright. If you just want to borrow some or all of the down payment, consider partners who have equity share the deal, consider seller financed second mortgage, consider hard money lender (least preferred takes most or all of the profit out of the deal. You can reply to me if you want more information or would consider a partnership.

Oct 26, 2008
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Jason E.
Broker/Agent
Houston, TX

I can send contact information for a company that does just this. email me at jezer@houstonlandandhome.com I dont profit from the company in any way, I have a client that has used them successfully in the past.

Oct 27, 2008
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Joe V.
Owner/Investor
Plymouth, MI

Easy answer. Business line of credit. Non-signatory, no credit check, available starting at $200k and up...with end financing also available at 100% financing/100% LTV. The LOC money leads right into the end financing...and the end financing even pays back the down payment from the LOC...so you can repeat the process over and over again. I'm doing this on a regular basis. Credit score doesn't matter. Based on your scenario, you can get 10% of the 2.6M needed from the LOC, then in 60 days get all of your financing including paying back your LOC...so you can repeat the process again and again and...When I started doing this my credit was, well, I live in Michigan doing SF...never again. Commercial is teh only way...and this financing makes it happen. I't's magical...and fast.

Nov 12, 2008
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Eric W.
Owner/Investor
Billings, MT

Alot of the answers below are not really feasible. You need to get your due diligence accomplished first before you shop for financing. I am a commercial banker and understand due diligence. You'll need appraisals, title work, phase one assessment, financial analysis, and possibly environmental insurance. Nobody with real money is going to invest unless these things are accomplished.
I work as a commercial banker and also own a due diligence company. We specialize in phase one site assessments nationwide. I started the company because I understand what is needed on commercial transactions. We get these done quick. I feel you need to start with a phase one before anything else. If an environmental issue is found, what is the point of ordering appraisals (commercial is not cheap) or putting earnest money down??
Call me to discuss getting your due diligence completed.
Eric Wells
406-697-2486
ewells@pointconsultinggroupinc.com

Nov 22, 2008
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Tai L.
Broker/Agent
San Diego, CA

I do residential and commercial in San Diego. Let me know if I can be of help.

May 23, 2009
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