Loan Size: $500,000 – $5,000,000
cap rate 11% and above
Credit score 640 plus
Principle must have 20K-40K cash injection
Commercial Real Estate Funding -94VH8ZOzWYiGhi0dh6ppNjmjys
How to find 100% Financing Apartment deals.
Loopnet.com is a good starting point. Search for 5 plus units with at least a 12% cap rate.
We like to see a occupancy of at least 50%.
Now due your Due Diligence. Your DSCR needs to be 1:25
100% Financing does not mean zero out of pocket.
Good Luck and Good Hunting
How to get your apartment funded with less out of pocket.
640+ credit Score –
10K -20K cash reserves
Building with 12% cap rate
Selected Apartments For Sale
To get 100% Financing insure that apartment cap rate is over 12%
What Does Capitalization Rate Mean?
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor’s potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. If you want to get technical, it is basically the discount rate of a perpetuity.
Capitalization Rate = Yearly Income/Total Value
Also known as “cap rate”.
The Boyd Capital