Posted by Jwhite on April 27, 2008 at 16:18:20:
I have only purchased smaller investment properties, but I have decided to take the plunge into large apartment properties. I have done a ton of research, but not wanting to reinvent the wheel, I thought I would seek some advice from the rest of the group. I am interested in a $9 million property that consists of two phases. The first phase was recently constructed and consists of 88 units that are 100% occupied and with a 100 person waiting list. (The cap rate is 8.5%.) The second phase consists of land and building permits in hand for 120 more units and the architect, engineering, survey work has also been completed. The property has a $5.8 million nonrecourse assumable 40 yr loan 5.95% on Phase I. How best should I structure the financing to cover the construction costs of Phase II and the balance (including closing costs) between the assumable loan and the asking price? All thoughts VERY much appreciated.
- Re: How best to finance... Art 16:06:36 05/01/08 (0)
- Re: How best to finance... Jerald Tuck 14:36:26 04/30/08 (0)
- Re: How best to finance... zach 11:53:59 04/28/08 (0)