Posted by Don LeLievre on May 03, 2008 at 12:52:23:
How would my partner and I structure a 50 plus unit apartment deal with a sale price from $5mm-$15mm?
Do some motivated sellers take back second mortgages.Here is an example we are looking at in Virginia:
41 units range from 1240 SF to 1680 SF with rents for
the 156 bedrooms from $555 to $850. This is a
historical preservation tax credit with the city of
Richmond, Virginia which currently provides
$70.1k/year and is further detailed in the prospectus.
With projected EGR for 2008-2009 is $1,150,261, NOE of $463,310 and NOI of $686,951 the property is offered at $11, 500, 000. These are 4 BD units with dining room, living room, decks and internal parking provide student housing and are fully occupied. DSCR would not be the standard 1.2% at these numbers but would a lender finance
a deal like this if a seller were to take back a second such that the numbers did come out to 1.2. Do some sellers hold a second with a stake in future equity or can someone provide other creative ideas.
Can anyone comment on rates, closing costs, debt load,
etc. FICO score is 719.Our experience is in residential creative finance structures but we are new to commercial.
- Re: Ideas for zero down multi-million apartments Bill Bott 09:27:59 05/06/08 (0)