Educational Foundation
I have received some very solid advice in the short period of time I have joined this site.
I am still a novice REI but would like to further my education in a excellent commercial real estate book which covers the A to Z process of commercial investing (current strategies and methodologies).
Anyone have any recommendations?
Thanks again for any help in advance.
Appraisal vs Market Value which is ever is lower. In addition, you will need special funding programs for the property in question will definitely be considered a rehab property.
One possible option is use a hard money lender or talk with a local banker. I use a small bank for single family rehabs and they allow me to borrow up to 75% of ARV. I am in the process of buying a house for $32k with an ARV of $65-70K, so they will fund the purchase and give me a line for $16k for the rehab. I will have none of my money in the deal. I do not know if a program is available for multi fams like this but I would look into it.
Tom, if you google "Prosperity" as Amyarata recommends, you will probably be looking at 13%-20% for that $25,000 loan, according to your credit history. Good luck, TrendCat
45 SFH! I can only imagine the difficult of dealing with 45 separate units. Man, you should have just bought a small complex and operated it during the day.
But i guess thats why you are asking that question. Sorry, but i dont think you can do it, its a title and loan issue. You would be charged in the ten of thousands of dollars in legal fees alone by any company that ATTEMPTED to roll your properties under one loan. Yep, 45 independant appraisals also... sorry for the bad news but good luck anyway.
Search around for lenders that will cross colateralize the SFHs for equity and the multi-family loan.
what state(s) are the properties in. The approx value of the 45 properties and the percent of leverage?
There is always a way in the real estate market. If you want to purchase you can, will need to show 10% to 20% down based on equity of units, can lend on them to achieve ultimate outcome of purchase.
Sounds like the stuff that caused our Sub-prime meltdown, fraud. If you need to show the funds bring in a partner that has the funds, keep it legal, it may help you sleep at night.
Quote:
On 2008-01-06 15:44, HardMoneyMi wrote:
Sounds like the stuff that caused our Sub-prime meltdown, fraud. If you need to show the funds bring in a partner that has the funds, keep it legal, it may help you sleep at night.
What are you talking about? How is leveraging cashflowing properties to purchase more property anything like fraud? Or am I misunderstanding you?
I think this was actually a response to a previous post on paying for a proof of funds letter...
Chris
How did this deal end up going for you?