Commercial Property Question

I am looking at a piece of commercial property that the owner needs to sell. He owes $619k. The property I believe will appraise for close to 1 million. I believe he will let it go for what he owes but he needs 80 cash at closing. If I don't have any big amount of cash to put down will a bank loan 100% on a commercial loan if its well below FMV? Or any other ideas you may have for me to think over.

Comments(3)

  • InActive_Account8th February, 2004

    You will have to find a bank or mortgage broker who will fund the purchase. If it appraises for what you feel it will you will have a loan for approximately 70% LTV. A more important consideration will be does the property produce enough income to pay all expenses (maintenance,taxes,insurance,and payment).

  • ZCore8th February, 2004

    Yes the property right now will carry the expenses. And it will only grow.

  • ZCore8th February, 2004

    Also this is a business that I am familar with and the bank knows this. Will that help at all them knowing that I know what to do?

Add Comment

Login To Comment