Potential Deal
Hello. We found a commercial property in a developing area. It is priced at 3.5M. It consists of a large warehouse (15,000 sq ft), 2 smaller warehouses, 2 buildings with offices, 3 bays area that can be used for auto work.
Some of the buildings and warehouses are vacant.
Current income is 29K net per month. It could probably be increased by 5-6K per month.
My understanding is that a downpayment of 30-35% is required on this type of purchase.
I am trying to make it work without a large cash investment.
My thoughts are that LLC can be created and investors can be found to fund the deal.
What are some if the ways to make it work?
Can LLC obtain a loan without personal guruantee?
Please let me know your great ideas.
Sincerely,
Alexander.[ Edited by RE_investor on Date 12/22/2004 ]
"My thoughts are that LLC can be created and investors can be found to fund the deal."
please consult your tax man first, some states may take the position that you are selling securities, are you licensed for that?
"Can LLC obtain a loan without personal guruantee?"
anything is possible, but my own personal experience tells me that it is highly unlikely, especially considering the relative short duration of the LLC. personal experience has indicated that most banks/conventional loan sources won't even begin the process for an LLC without a 2 yr history/financials etc. personal guarantees can and often do shorten that period to nothing.
best of luck with your deal, happy holidays to everyone.
Hello:
Regarding an LLC securing a loan with no personal guarantee.
I have a partner with huge commercial holdings. His net worth is easily 7 figures. His RE transactions are conducted through an LLC (or multiples) and he is always required to sign personally, or, put up other RE as collateral.
There are some 'gurus' who claim you can 'get credit' through an LLC without a personal guarantee, and that may be true in the form of a Staples Card or line of credit at Home Depot. But a big loan will need a personal signature, IMO.
HTH-
WG
The latest is, made an offer of 2.8m and the seller is considering it. Today they asked for pre-approval letter. Since I am planning to find investors once in contract, and cannot qualify myself, what would be your suggestions on what to say to the seller regarding the pre-approval. I think this one has a great potential.
If the seller is willing to carry back, there are some lenders who will do it @ 70% or so. Depends on occupancy and other conditions. [No personal contact info, please][ Edited by NancyChadwick on Date 01/31/2005 ]
It sounds like you have never done these type of deals before.
3.5 Mill is a lot of money to have on your back, partners and all.
If I were you I would buy something smaller to learn the ropes before jumping to this. 3.5 M is a very expensive way to learn what you can learn from at you locan library.
Which part of washington I might be interested.
You need to add it to your My TCI > My Properties area first.
As TCI Commercial grows, I have some really great ideas for projects just like yours to reach more and more users. The problem is.... you will have to wait until we start development on it in about two months.
Until then, post your property project in the My Properties area, and the users will contact you about it.
PS. Make sure you have all your contact information filled out in your My TCI > My Info area as well.
jfoley,
Although people can advertise properties in the Deals in Progress Forum, they have to have an ownership interest in the property and there are some other requirements, too. See the Special Rules for this Forum.
Nancy
e-mail me the project detail at **Please See My Profile** Is that in Dekalb county?
Please email me the details. Can you get the latest sale coms in the very immediate area? email me at **Please See My Profile**