I have a client seeking a cross-collateralized loan to purchase 23 individually deeded duplexes. Purchase price 1mm; would like to deed under the LLC w/ personal guarantee.

desired terms

75-80% ltv, 90% cltv, dscr 1.41 @ 7.5% on 20yr sched

i have not been able to find any lender willing to do this because the properties are under 4 units and are not a solid block.

any advice or direction is appreciated

The $21,740 per unit might have something to do with it also

thanks for the reply. the anticipated appraised value(s) would put the unit value closer to 27.5k.

in western pa, even the 20k wouldn't be too far out of line.

i can't even get anyone that will look at it due to the fact that the properties are typically residential

if the value wasn't an issue - would you have any suggestions?
thanks

As long as the first mortgage exposure is no greater than 80%, you should be able to get financing with a 10% seller carry (90% CLTV). What is being cross collateralized? Is the cross collateral being used in lieu of cash down?

no the individual deeds are being cross-collateralized. the difficulty ive experienced is the collateral is 23 duplexes.

the seller will carry from 80 - 90%. I just can't find a lender that will entertain the transaction because the property involved would generally be considered residential

the buyer can bring 10% to the table or we does own several properties on this street that he is willing to bring into the transaction to reduce his cash to close

thanks for the help, look forward to your response

I sent you a private message with the name of someone I know in Pittsburgh.

I don't see any reason why this cannot be done as a commercial loan. Despite the fact that these are duplexes, they can still be considered commercial when they wil be held in an LLC. It appears to be a simple blanket loan from I have read so far. With a first mortgage of 80%, buyer down of 10% and subordinate seller of 10%, I would do the loan, assuming of course the deal cash flows, the properties are in good condition and the borrowers credit is good.

i spoke with dave and he is on it. i thank you

essesntially, i am a residential broker and i am fortunate to have a large enough book of business to not really have time to learn the ins and outs of commercial lending.

with dave i am hoping to have a strong partner to refer these to while i maintain my client base. it would seem that this will be an ideal situation for both of us.

again, thank you