Posted by brandoncbsre on March 18, 2007 at 07:21:47:
Assuming 25 percent down (which it doesn’t sound like you have)and a 25 year commercial loan at 7 percent the payment would be 10,000+ per month. Not to mention the expenses (probably more than you think ,$40-50K a year minimum) If the deal doesn’t make sense with that financing you surely wouldn’t want to finance 95-100% LTV. Just my opinion, but I’d walk unless seller is willing to accept a price low enough to cover all expenses and the mortgage. Due your homework, I looked at a lot of overpriced “deals” before I bought my first commercial propety. The problem I see is that the vast majority of Realtors in my area don’t have a clue how to price investments.