Financing Question On Commercial Property
We are looking into buying a property in Miami, its offered for 440,000. My friends are willing to loan to us 140,000 for 3-5 years, the difference - 300,000 we will take a mortgage. The question is, what paper we make that we pay them back after 3 years all amount + 6% per year in interest. And how this will affect our mortgage.
Not sure exactly what your trying to say, but it depends on how you show the money, and if sourcing of the money is required by your lender. Creative structure of the second mortgage by your friends should not hurt your deal, if the property is generating enough capital to cover. PM me if you have more specific questions.
Where are you going to get $140,000 within the next 3-5 years???? Sure it will appreciate, but that's hyper appreciateion and you definitly can't count on that. Are you willing to sell the property at that time to pay them back?
Most lenders will do 75% LTV loans (plus or minus 5%) and anywhere from 70-95% CLTV. Bring your friend in as a partner, and it's no big deal. Otherwise you'll have to do a silent second (technically loan fraud) or work out some other arrangement.