First Deal
Hello all,
First commercial deal I am thinking about.
It is 2 seperate aparment buildings.
One is a 6 unit, fully rented out, the other is a 10 unit fully rented out. Both have been fully redone and rehabbed top to bottom.
Appraisal on both properties is 1,030,000.00
I got him to take 80% of the FMV which is 824,000.
Together the rents bring in about $11,500/mo GROSS
I found myself a NO DOC Commercial loan where I beed 20% down or else have the seller carry the 2nd.
Is there any other way to do this deal?
please advise..Thank You
If your no doc situation is strong enough and both properties are in the same city you could actually do a blanket loan for this project, or the seller could take 85% and carry a 7.5% note it depends on the seller and where you are getting the financing from. I hope it sheds some light.
Regards,
Steve
The realtor should have financials on the property, or you will want to see the owners tax records showing income and expenses on the property.
As far as valuation - $$ & condition. Do it on a per unit bases. IE: look at it as if you are buying 24 seperate units. You will want to look at each individual unit.
Find a different buyers agent unless you really trust the sellers agent. Sometimes you can work out a better deal since the agent will be making higher commision but other times they could be greedy and keep the price higher or assist you in overlooking faults of the property to make the deal go through.
Have you asked if the owner is willing to hold the note? Sometimes when the units have been held for a long period of time, the owner may be looking for retirement money. If he/she is not doing an exchange into a different property-this couold be an option. Just a thought.