I'm looking for a loan to purchase a 44 unit apartment complex in Louisville Kentucky, in the most prestigious part of town.
The investment needed is simple:
$5.2m for a 10 year term, with annual return of 5%. In other words, each year we pay a return of $250k with a balloon payment at year 10 of the full initial investment, $5.2m.
My fiance and I will be managing the property and maintaining the current 100% occupancy.
With the income currently we'll be able to easily pay the $250k annual return with a $150k+ cushion to cover vacancies. This is is the most desirable part of Louisville though and occupancy will never be an issue. Call any real estate agent in town and they'll tell you the same.
This is basically a 10 year CD that will pay an apr of 5%, which is much better then the 2% you could earn from a bank.
My background: 2 yrs in CMBS at E&Y, 4 years as an FP&A manager at Travelex, and 1 yr as an asset manager for Atria Senior Living.