Refi Source For Small Apartment Loans?

[Arthur Zwern]

I’m looking to refi a performing 18 unit apartment property 20 minutes from Ft Worth TX with a $250k+ loan against $400k+ current value and ~$50k current NOI. Seems like it should be a no-brainer but we keep hitting walls including small loan size. Wondering if someone here might have a solution? Thumbnail: 

- Purchased July 2014 direct from owner as a discounted value-add/turnaround, which is now completed. 

- Approximately ~$50k T-12 NOI is on the books. Forward NOI should significantly increase without the start-up cost impacts. 

- We have completely cleaned up the 18-units (new roofs, 14 of 18 interiors upgraded with another in progress, over $40k capex to-date). We also turned the tenant base from 100% weekly cash tenants to 100% leases. 

- It should appraise for >$400k in a heartbeat even at double digit cap rate. We want to take out our current loan of $250k (or more) using 5 year conventional debt subject to appraisal, which should hopefully be in the mid 5%s. I think this would look like over 3x DCR, under 70% LTV, and otherwise look very low-risk on underwriting metrics. 

- Long-term upside due to prime location next door to city hall and across the street from potential town square park. 

- The 3 principals of the SPE have 60+ years combined experience in management, rehab, and finance over many thousands of units; each of us are good credits with good balance sheets plus hundreds of units done together. Two of the three are local, and one owns an apartment management company with thousands of TX units under management. 

- It seems too small a loan for most commercial sources. The local banks only see the rear view mirror, and want to lend an LTV against our original deeply discounted purchase price 13 months ago, which won’t take out the $250k minimum we want. 

I look forward to any potential solutions this group might be able to offer or suggest. We hope to close within 60 days. Note I will be offline today through 8/15 and hope to return to good news! 

Thanks and Regards,

Arthur Zwern

NextLevelAssets.com

[Jarrett Lovick]

Hello Arthur,

My source can fund up to 75% of the appraised value and can close within 2-4 weeks! Please email me to discuss this deal further:

[e-mail]

Jarrett Lovick

301 887 3159

[Arden Gist]

Call soon 843-465-3996

[Arthur Zwern]

Hi Arden, please email me basics on your program "Arthur (at) NextLevelAssets.com". Thanks.

[Rene Beverly]

TAMCO Capital can provide funding your commercial deals between $75,000 to $350,000. Small apartment buildings, Mixed Use, Retail, Office, Warehouse, Hotel/Motel, Recreation, Daycare, Hair Salon, Auto Body, Funeral Home, Church, Self Storage, Convenience and more. Close in 2-3 weeks. Credit scores from 475.  60% LTV. No Seasoning or Penalty for Early Payoff.

Contact: [e-mail]

Larger deals from $2MM to $25MM considered case-by-case by our senior analysts.e.

www.sfmortgage.info

[Arthur Zwern]

Hi Rene, your web site indicates 12-15% rates, low credit scores ok, fast close, etc which sounds like hard money loans - we have high credit scores, want to get below 6%, and we are prepared to fully document. If you can assist with that, please ping me. Thanks! 

[Stephen Mitchell]

Hi Arthur 

I have several lenders that are interested in your project, please contact me at [e-mail]. 

Thanks Stephen

[Richard Pickett]

Email an executive summary to [e-mail] can also call me 202-604-5480.