Posted by Mike on March 07, 2009 at 04:40:34:
Yes Joe, remember this site is suppose to be CREATIVE REAL ESTATE ONLINE? Nothing creative about paying full price for a property and putting 20-30% down!
Apartment buildings - Financing Questions - Posted by Brian
Posted by Brian on March 05, 2009 at 12:26:51:
Say I want to buy a 50 unit apartment building in my area for $1.25 M, and I
have hard money lined up for 70 % LTV from one source. Would I be able to use
another hard money lender to finance the 30% down payment of $250,000 so I
do not have to use any of my own cash up front?
Re: Apartment buildings - Financing Questions - Posted by Mike
Posted by Mike on March 07, 2009 at 04:37:27:
It is possible to use business LOCs. Why dont you try getting the seller to reduce their price down 30%? Then you will just need the HMLs money?
Re: Apartment buildings - Financing Questions - Posted by brandoncbsre
Posted by brandoncbsre on March 05, 2009 at 13:43:02:
In theory, Yes
The problem you will run into is finding a HML that will fund the 2nd. You would have a better shot getting the seller to hold a second for the remaing 30%
Re: Apartment buildings - Financing Questions - Posted by Joe-GMC
Posted by Joe-GMC on March 05, 2009 at 18:55:15:
Hate to ruin the party, but please introduce me to the lender that will allow 100% CLTV on a commercial transaction in today’s climate. I may have to jump ship and work elsewhere.
Theory and REAL WORLD do not co-mingle. Even a seller carry back to 100% is not viable. No lender wants to own property. We’re in it to earn interest payments.
This is a topic that really needs to end.
Re: Apartment buildings - Financing Questions - Posted by Brian
Posted by Brian on March 05, 2009 at 15:52:18:
That has been an idea of mine also. However, I was unsure as to how
receptive sellers would be to holding a 2nd. In commercial real estate, do
you find that this is more common for a seller to consider holding a 2nd
mortgage?
Re: Apartment buildings - Financing Questions - Posted by Mike
Posted by Mike on March 07, 2009 at 04:39:10:
Seller financing does work. I have done it many times. Its a numbers game. I would not be paying full price for any property though. Why are you giving the seller his full asking price anyway?
Re: Apartment buildings - Financing Questions - Posted by Brian
Posted by Brian on March 06, 2009 at 08:58:54:
Joe-GMC, first off, why so rude. People like you should have no part in
this forum if you can’t offer constructive advice. Never did I say I was
wanting a single lender to cover 100% LTV… maybe you should’ve read
what I suggested? I was talking about about a 1st mortgage with one
lender of 70% LTV and then having a 2nd mortgage with a different
lender of 30%. It was just a question and I was curious to know the
answer. Maybe you should put yourself in the shoes of somebody
trying to learn the business because that way you’d then understand
why I asked the question in the first place. All I’m trying to do is
become aware of how to creatively structure deals. So, instead of you
taking out all your frustrations on someone, maybe you should join a
yoga class and learn to chill out.
Re: Apartment buildings - Financing Questions - Posted by brandoncbsre
Posted by brandoncbsre on March 06, 2009 at 24:52:32:
Are you kidding me? You come to this board, that is about “creative” real estate investing and post this?
I am not saying it will be easy…as a matter I said he will have a problem finding a lender. There are investors out there who have the connections that can get 70% HML for the 1st and have a seller second for the balance.
Just because it isnt something that can be wrapped in a CMBS pile of crap doesn’t mean it wont get done.
Can he do it?
I dont know. I dont anything about his experience or his Grandma’s bank account. Most likely he is new to the game and is starting off one the wrong end of the spectrum.
Re: Apartment buildings - Financing Questions - Posted by Mike
Posted by Mike on March 07, 2009 at 04:42:20:
Brian, its a numbers game. You will find that more sellers will hold a 2nd mortgage in commercial than in residential.