Full Version: 2nd mortgage for multifamily property
Hi, I am a mortgage broker who has a client in North Carolina who is purchasing a $3.4 million dollar multifamily complex. I have found him financing for 80% of the loan amount, with him putting down 10%. The problem is, the seller has now changed his mind about a seller second, leaving my client 10% short to purchase the property. I am having a hard time finding a second lender to do the second at 10%. I do not think a hard money loan would be something my client would want. If anybody has any suggestions or answers, please let me know. Thanks, in advance, for your help. Have a great day.
Sorry but I know of no one offering 2nd mortgages to 90%. Your only choices will be hard money or a private investor, neither of which will be cheap.
did you try Impac
QUOTE(firstfinancial @ Oct 6 2005, 11:43 AM)
Hi, I am a mortgage broker who has a client in North Carolina who is purchasing a $3.4 million dollar multifamily complex. I have found him financing for 80% of the loan amount, with him putting down 10%. The problem is, the seller has now changed his mind about a seller second, leaving my client 10% short to purchase the property. I am having a hard time finding a second lender to do the second at 10%. I do not think a hard money loan would be something my client would want. If anybody has any suggestions or answers, please let me know. Thanks, in advance, for your help. Have a great day.
Have you tried private money? I do not know what your client is willing to pay, however, private lenders are often flexible. It is amazing how many people have money & would love the opportunity to make a nice return secured by real estate or a business. If you & your client don't personally know anyone who has the $$ needed, consider placing an ad. It doesn't need to be complicated. The important things are:
Advertise the rate you will pay.
Be prepared to answer detailed questions about the collateral. This is not like an
underwriter used to waiting on info. These folks may never have loaned like this before, your job is to make them very comfortable, you do this by never ever overpromising & always providing calm, detailed info.
Have the deal packaged as you would for an underwriter when you present the
opportunity to the potential private lender, but don't expect them to know how to
properly review the info. This is when you "sell" them on the commitment of funding.
You do this by politely explaining the package while never talking down to them.
If you do not want or can't wait on results from an ad, contact all of your local real estate clubs & see if any of their newsletters have advertisements of people who do this.
Hope some of this helps. (I know it works, I use it on residential - the principals don't change, just the zeros)
Advertise the rate you will pay.
Be prepared to answer detailed questions about the collateral. This is not like an
underwriter used to waiting on info. These folks may never have loaned like this before, your job is to make them very comfortable, you do this by never ever overpromising & always providing calm, detailed info.
Have the deal packaged as you would for an underwriter when you present the
opportunity to the potential private lender, but don't expect them to know how to
properly review the info. This is when you "sell" them on the commitment of funding.
You do this by politely explaining the package while never talking down to them.
If you do not want or can't wait on results from an ad, contact all of your local real estate clubs & see if any of their newsletters have advertisements of people who do this.
Hope some of this helps. (I know it works, I use it on residential - the principals don't change, just the zeros)
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