Advice needed on buying a multiplex
Question: I am interested in buying a multiplex. It has 6 units and I have visited it already and is in decent shape. I am in Canada, so not sure if same as in USA, but banks will lend you only 75% on multiplexes if you do not occupy one of the units. I have the 25% to give, but I really wanted to buy 2-3 different buildings and splitting it as cash down on three rather than on one. Obviously I have not found the other two yet and prefer to take it one step at a time.
Is there anyway for me to get the bank to finance with 5-10% down? I am dealing directly with the seller with no agent, so not sure if I could be creative and benefit from that.
Any advice is greatly appreciated
Answer: We might not have as competitive a banking environment here as in the USA, but the banks and financial services companies are still very competitive. If you make the companies compete among themselves I am sure you can end up with a satisfactory arrangement. Just because interest rates are the lowest in history doesn’t mean you can’t get greedy for a little better rates. Maybe, maybe not. But would the seller consider helping you out by taking back a 2nd mortgage of 15 to 20%?? Typicly you would write this as a 30 year loan with a clause that requires you to pay the full ammount due in 5 to 10 years. If you are not going to occupy the unit, 35% is the minimum.
If you need a banker who will hear you out, reply to this message to e- mail me so I can pass you his info.
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