Looking for money
|Posted by: Daydomen Apr 1 2004, 09:10 PM|
|Hi, I have been looking for and bidding on several apartment buildings, mostly 6 units. I am currently bidding on a 6 unit with numbers that look like this;|
Gross Income $ 61,200
Vacanty 5% $ 3,060
Heat & HW $ 2,400
Insurance $ 4,000
Taxes $ 3,262
Cold Water $ 960
Maintanance $ 2,500
Net Income $ 45,018
My question is, I have been looking into commercial financing, but most of the banks I have spoken to all state that they require a 25% down. I keep reading that many banks loan with 20%. I have approximately $105,000 that I can invest, but I would like to try and do more that 1 project at a time, therefor that 5% would make a big difference for me. Can you direct me to any institutions that loan commercailly for 20% down. Thanks in advance.
|Posted by: loanuniverse Apr 1 2004, 09:44 PM|
” Can you direct me to any institutions that loan commercailly for 20% down. “
Well, not really…. Most commercial lenders are local, and frankly I do not even know where you live
My advice: Talk to more commercial banks in your area, you will find one. Also the operating expenses look a bit understated. A long time ago, someone told me to use 35% as a yardstick. This does not mean that your operating expenses could not be that amount. It just means make sure that the numbers are right.