Ed I need help on this one. - Posted by chuck

Posted by Ed Garcia on January 23, 2001 at 20:33:23:


You’re right; it’s obvious that your so-called Hard Money Lenders, are not Hard Money.

Chuck, You’re either going to have to find a hard money lender or a partner. But to be honest, I’m curious of how you’ve penciled your deal., or what you know about it?
I would go for a second go around looking for a hard money investor or partner investor which ever comes first. I would see how many of the basic 19 questions you know the answer to. Not what you think the answer is, but you know the answers too.

Questions to ask for commercial

(1) Describe The Units and the surrounding area?
(2) How old are the units?
(3) What’s the unit mix ( how many 1 br. 2 br etc)
(4) What’s the vacancy factor in the area?
(5) What is the gross income of the units?
(6) What is the vacancy of the units?
(7) What is the NOI?
(8) What are market rents in the area?
(9) Are there any other Units in the area for sale?
(10) If so at what Price?
(11) What are the going Cap rates in the area on multiple units?
(12) Have any other Units in the area recently sold?
(13) If so at what price?
(14) How much does the seller owe on the units?
(15) If there is a loan, is it assumable?
(16) Will the seller carry a second?
(17) Is there any differed maintenance?
(18) If so, estimated cost of maintenance?
(19) How’s your credit?

If you answer these questions, then I can answer yours, with a meaningful answer.
Otherwise, it’s just, What ifs? or hypothetical.

Ed I need help on this one. - Posted by chuck

Posted by chuck on January 23, 2001 at 19:25:04:

Ed I have located a 22 unit property with a small convienence store attached for sale. The purchase price will be around 400,000. The property is adjacent to a major university and worth around 800,000 after about 100,000 worth of rehab work. Every hard money lender that I have contacted has told me they need to see all of my financials as well as pull a credit report on me before they do a deal. I thought hard money was supposed to be based on the value of the asset only. Any suggestions as to what I should do? I do not have good credit at this time or cash to put up as a down payment. I believe the owner would also carry a second on this deal. Thanks for the help.