Commercial Financing - Posted by Paul Martinez

Posted by Ed Garcia on December 04, 2002 at 10:14:18:

Paul,

Yes, 100% financing can be accomplished on a case-by-case basis. It depends on how good of a deal you have (buying below market and good cash flow), how it’s structured, the seller’s cooperation and what they will carry, the buyers credit and financial strength, and utilization of a portfolio lender.

In most cases when using a National lender, the best that can be expected is an 80-10-10, which mean 80% financing, 10% down, and 10% seller carry-back. Most lenders prefer an 75-15-10.

Seller’s motivation is always a factor in finding a good deal however in most cases it’s a matter of the investor is either is a tired investor for what ever reason, an investor who wants to do an exchange, or an investor who wants to liquidate their real-estate portfolio which is usually an older investor.

I’m sorry to say that to my knowledge that there are no lenders out there buying other then what I’ve described above with any consistency. If by chance you should come across any lenders that do, please feel free to share them with us.

Ed Garcia

Commercial Financing - Posted by Paul Martinez

Posted by Paul Martinez on December 03, 2002 at 21:33:23:

Hello,

I am looking to move from residential to commercial properties (Over $1million). My problem is the 20% down that many of the lenders need to do this. My questions are as follows:

How easy is it to get these owners in a depressed market to carry the loan?

Can I borrow the down payment @ a certain percentage rate?

If I show that the property is cash flowing over 25%, with a solid renter locked in for a couple of years, do I have to have a down payment at all?

Any other suggestions?