Thanks so much for responding to my message. If I ask the seller to carry, should that be noted in the purchase agreement? Who would be responsible for drawing up that special paperwork?
HI , I am attempting to put together a proforma for a development project I am working on. Is there anyway I could review the proforma you have to use a template format for my own?
The first and most important thing you need to do is buy right. Make your money going in. NO EXCEPTIONS! If you can do that, there should be no question that you can get an appraisal higher than what you purchased it for. Remember you need to buy it based on current condition/occupancy and future expenses (taxes/insurance). Your goal will be to increase occupancy/income/appearance before looking for a commercial loan. Commercial guys are all numbers, but they may do a drive by to check the condition and neighborhood. Even if you can get the sellers to owner fi for you, you should run the deal by a broker or lender to see if the numbers work as they are now.
Also, when it comes to getting a refi., even if you can only get what you paid for it, it still pays off their mortgage and most if not all of their equity. Worse case scenario is they would have to still hold a small second mortgage to make the deal work.
Swetbak, the information you have provided is priceless to me. Thank you so much. Do you own multi-units? If so, can you tell me some of the mistakes that you made as a beginner and how you corrected those mistakes? By the way, if you are feeling exceptionally generous, I am looking for a mentor.
The lender will want to know that there is a debt service of at least 1.2. If you are having a hard time cash flowing the max they will lend is 75%. To go above 80% they will want a DSC of at least 1.3. I am also an investor and I found out (the hard way) that a positive income can be eaten up with fix up and empty units, so make sure you are getting a good enough return on your money.But I agree you can borrower 75% and have the seller carry 20% and offer low! Call me if you need a good broker for the loan. Good luck!!
Thanks Broadcreek for your information. If I got 80 or 85 percent financing, would the lenders allow the sellers to carry the rest. Are the lenders concerned about how much I have to put into the deal? If lenders are concerned, could I contribute as low as 3 or 2 percent because of the size of the loan?
I work for a Commercial Lender and we have programs that lend up to 85% to 90% it depend on the property and the credit scores etc....When you get close to needing to obtain the financing you or your mortgage broker can contact me.
Perhaps the property needs to be rehabbed, the stabilized NOI would be the NOI when the property is operating in its fixed up state.
Stabilized NOI is after the property has been leased up to market levels.
Ask the seller to carry 10 to 20 percent of the purchase price for a down payment. You are on the right track.
Thanks so much for responding to my message. If I ask the seller to carry, should that be noted in the purchase agreement? Who would be responsible for drawing up that special paperwork?
HI , I am attempting to put together a proforma for a development project I am working on. Is there anyway I could review the proforma you have to use a template format for my own?
The first and most important thing you need to do is buy right. Make your money going in. NO EXCEPTIONS! If you can do that, there should be no question that you can get an appraisal higher than what you purchased it for. Remember you need to buy it based on current condition/occupancy and future expenses (taxes/insurance). Your goal will be to increase occupancy/income/appearance before looking for a commercial loan. Commercial guys are all numbers, but they may do a drive by to check the condition and neighborhood. Even if you can get the sellers to owner fi for you, you should run the deal by a broker or lender to see if the numbers work as they are now.
Also, when it comes to getting a refi., even if you can only get what you paid for it, it still pays off their mortgage and most if not all of their equity. Worse case scenario is they would have to still hold a small second mortgage to make the deal work.
Swetbak, the information you have provided is priceless to me. Thank you so much. Do you own multi-units? If so, can you tell me some of the mistakes that you made as a beginner and how you corrected those mistakes? By the way, if you are feeling exceptionally generous, I am looking for a mentor.
The lender will want to know that there is a debt service of at least 1.2. If you are having a hard time cash flowing the max they will lend is 75%. To go above 80% they will want a DSC of at least 1.3. I am also an investor and I found out (the hard way) that a positive income can be eaten up with fix up and empty units, so make sure you are getting a good enough return on your money.But I agree you can borrower 75% and have the seller carry 20% and offer low! Call me if you need a good broker for the loan. Good luck!!
Cheri,
You can contact me at my username at hot mail.
Thanks Broadcreek for your information. If I got 80 or 85 percent financing, would the lenders allow the sellers to carry the rest. Are the lenders concerned about how much I have to put into the deal? If lenders are concerned, could I contribute as low as 3 or 2 percent because of the size of the loan?
I work for a Commercial Lender and we have programs that lend up to 85% to 90% it depend on the property and the credit scores etc....When you get close to needing to obtain the financing you or your mortgage broker can contact me.
Where is the property located? Do not tell me it is in OK.