If lenders finance apartment buildings based on performance and cash flow ability how strong does the credit n

I want to purchase my first apartment building by minimizing the up front cost as much as i can but the property has to cash flow enough to cover financing and property management fees and of course expenses. I could do the math on that but since I never purchased an apartment building I'm seeking a little advice to double check my work. I want to succeed in hiring the ROI.
In Buying Property - Asked by Ronnye L. - Feb 3, 2012
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Arlene Z.
Chattanooga, TN

Since I work with several investors, I know of a bank that will finance apartment buildings for 7% down and finance 93 %. You can contact me at Real Living Design Realty in Chattanooga, Tn
423-52-8616. Arlene Zuckerman, Broker

Feb 4, 2012
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Jay Z.
Phoenix, AZ

The credit probably needs to be very strong.
It is a good idea to plan on putting 25% cash down. That way the rent covers the payment.... easily.

Feb 20, 2012
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Tayyar E.
La Jolla, CA

There are many different scenarios but whats hold true most of the time is the debt coverage ratio and the true expense numbers. In addition the banks look for experience of owning and managing real estate . There is really no clear answer but the credit also looked upon as an important factor. The upfont cost would be anywhere from 25-50% for depending on price , income and expense of the apartment transaction.

Feb 22, 2012
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Raluca R.
San Diego, CA

The bank will make two important determinations in their process of deciding to lend on an apartment building. First, they will look at the apartment building itself, its income and expense, cap rate and such. Then, they will consider the buyer, their credit score and their experience in ownership of apartment buildings. Lenders will however have varying criteria for approvals and rates and so it will depend on whether properties and borrowers are A, B or C class, as they're referred to in the industry. With a knowledgeable broker, whether you are a seasoned investor or starting out on your quest of apartment building ownership, find a broker you can trust who can lead you through the process. You can contact me directly for further questions. Your friend in the business, Raluca.

Mar 6, 2012
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