What about making a loan using unstated. Based on credit score only. Or could you use private money for 24 months until u have 2 years of data on this property to support a loan on it conventionally. Lots of apt building and mhp’s are financed with hard money and donot make much money for the first 2 years. Then after getting into conventional financing your good to go. If your broker doesnt know what an unstated loan is get a new broker! You will have to have a minumum 680 mid score to go unstated. The property will also have to appraise out to go unstated as well. It might be a 80 to 90% LTV situation. Im not a broker but this is what one of my brokers would say to you. The other thing is if you have a local banker that trusts you and you can expand this project , todays income numbers may not matter. In contruction loans its projected numbers that are often used to make loans.
I am seriously studying investing in Self Storage Facilities as my first step into the Commercial market. I have Ray Alcon’s book on Commercial investing and it is like drinking from a firehose (Great book). I am looking at two properties, one owner where the actual income and the reported income are two different animals. I would like to lock both properties because the potential is great and if the actual is real, the properties definately cash flow. Problem is how do I find a lender who will lend on some under-the-table income? Is lease option best bet and establish income? Any suggestions. These are newer buildings in small town America with little to no competition. Thanks.
i am also very interested in getting into self storages
you say the best source is reading ray alcons book?
what other sources have you used in order to help get you more informed on operations, costs, management, etc.
please share your knowledge