Expert: Brian Bocchieri - 11/24/2008

Question
Thank you Brian for participating in this forum. A brief view of who I am. I live near Buffalo NY with my wife of 25 years. About 6 years ago we began studying real estate investing by reading and attending seminars. We made our first purchase on 12-3-03, a 2 unit home in Buffalo. Since then we have expanded to 42 units in and near Buffalo, consisting of duplexes,four and six unit properties. We would like to begin purchasing larger properties for all of the obvious reasons.

The road blocks we are encountering are the need for larger down payments, investment partners(hard money) and simply finding larger deals that make cash flow sense.

I believe we have our entity structure in place. Property management is by our s corp and our properties are owned by multiple llc's. We don't want to venture outside of our geographic area. We are open to MHP and other residential complexes.

Answer
Hello Randy,

Congratulations on you success you have done well.  

I am not sure I know what your question is but I will try to answer.  

First there is no way around the down payment do not get sucked into the no down mentality ( that is how this banking mess started).  

As a broker we have programs available for purchase, purchase and rehab, and refinancing.  

Purchase financing; 85% LTV,  35 year amortization 35 year term no balloon, loan is assumable, non-recourse, and the lender allows a 7.5% seller promissory note allowed for down payment.  Third party expenses and loan cost can be financed. Nonrecourse  This bring the total LTV to 92.5% which means a total out of pocket down payment of 10-13% required in cash to close the loan.  these loans are for $3M+ only


Purchase rehab gets a bit better but rehab needs to be $15K per unit.
loan term and amortization is 40 years developers fee of 10% can be used towards equity requirement.  

As for how to find the property check with a good commercial realtor they should be able to help.  

I hope this helps please feel to contact me to discuss in more detail.  

Wishing you all the best, and have a very Happy Thanksgiving!!

Brian Bocchieri