Equity Or Mezzanine Lenders

Has anyone used an equity or mezzanine lender to finance part of a deal? We are looking at a 5 mil deal and wanted to bridge our equity gap to bring it close to a 90% ltv deal.

Thanks, Matt

Comments(5)

  • cjmazur16th October, 2007

    as if he has a drop dead number. A retired guy is selling this building unpriced. After building a raport with hime, I asked if he had a drop dead number.

    2.6M while I was willing to pay 3M.

    All you can do is ask.

    Will an installment sale help his tax situation?

  • productive17th October, 2007

    I am taking both of your advice. I believe the 7% cap rate is typical in Chicago.

    Does anyone know how I would find out what is typical for a cap rate? Would I ask a realtor, a mortgage broker, or is there a more impartial source?

  • stdavid17th October, 2007

    You should really have a Realtor working for you. Ask a Realtor and a mortgage broker.

  • ICGPROPERTIES11th December, 2007

    7% is low for Chicago. remember, the current sale price and the current ROI equals 7%, but what makes you think that you can do the same? Todays commercial rates might be much more than what he is currently paying, so you need to get a LOI from a lender. This way you have a real rate to use to calculate actual ROI. My feeling is that it wont be 7%

  • realjoyestate17th December, 2007

    productive. did you end up buying that property? i saw that you are from chicago. was wondering if we could chat abt whats going on in chicago. pm me. thanks

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