I'm currently evaluating the idea of withdrawing money from my 401k to purchase a small multi-family property for my primary residence. I would love to speak with anyone who has done this or thought about it themselves.
Also, does anyone have any perspective on debt assumptions or where to even start getting them for a deal under $1.5M? Local bank? Residential Mortgage Broker?
| +23 | SWF/Pension Funds in RE | 3 | 4d |
| +15 | Development vs. REPE pay gap | 8 | 1h |
| +14 | PGIM Real Estate Equity Opinions? | 9 | 1d |
| +13 | CRE Credit → Capital Markets | 2 | 3d |
| +11 | PRE MBA IB back to IB | 5 | 1d |
| +10 | Reneging - What should I do? | 5 | 11h |
| +9 | Going into RE Entrepreneurship before FT REPE experience. | 0 | 1h |
| +9 | To the veterans: What was institutional dev actually like during the last bull run? | 1 | 1d |
| +8 | REPE AM Modelling Test / Case Studies? | 2 | 4d |
| +8 | MBA Pipelines for REPE | 6 | 10h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Depends on the market. In my market banks will go conventional at 5% for a SFR or Condo, but for 2-4 units, its going to be more. I was recently soft quoted 15% for 2 units and 25% for 3-4 units. 5+ is a different story.
You can use FHA if its a primary residence and go 5% down, but there are some pretty steep fees and as others have eluded to, PMI for life of loan hurts.
I have received similar feedback to weaksaus . I would be interested if anyone has found non-fha financing for 3-4 units that requires less than 25% down.
10% is fairly common. Check with a resi mortgage broker (not direct lender). They will typically charge an origination fee but its usually worth it for the ease of comparing products and getting a lower rate.
Interesting. I have yet to find such a 10% down payment for 3-4 units. Any chance you have a link to a lender or broker who offers this?
Ut nobis error vel vitae. Et excepturi esse sint enim. Earum ea omnis aut cupiditate voluptas vitae. Blanditiis corrupti nihil natus pariatur. Perferendis et quis repellat consequatur odio debitis quis.
Est ut consequatur porro dolor et dicta rem ut. Nulla placeat nihil mollitia id sapiente aut dolorem sint.
Rerum quis blanditiis ipsam quasi commodi omnis est et. Temporibus voluptatem et fugiat sapiente animi. Culpa magni voluptas sint placeat odio perferendis porro sit. Eveniet et libero est quia est.
Minus consequuntur nostrum molestiae. Et asperiores dignissimos totam sed molestias. Necessitatibus eius rem molestias officiis. Sint eligendi et nihil facilis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...