Posted by wes on May 27, 2006 at 11:55:38:
What is the approximate amount you would be financing?
If you can get a Non-Recourse Loan, your personal risk would certainly be minimized. With this type loan, the lender is agreeing if you default on the loan of the property being financed, the property is enough collateral to satisfy the loan. They would then take possession of the property and you would forfit any further interest in it but also have no further obligation to pay the loan…
Generally these loans are $1,000,000 or more and obviously the lender has to be comfortable with the potential cash flow and value of the property being financed…
Regards,
Financing for commercial real estate - Posted by Joel Peck
Posted by Joel Peck on May 27, 2006 at 08:37:33:
I am partnering with a business that is willing to assist me in financing the commercial building in which I would be the owner/occupant. The partners are open to creative financing options. I would appreciate any ideas or suggetsions on the best way to utilize their money and minimize my personal risk.
Re: Financing for commercial real estate - Posted by Charles Parrish
Posted by Charles Parrish on May 28, 2006 at 21:15:40:
- Ask that your financing be subordinated.
- Ask for principal only payments (no interest)
- Ask for delayed payments; no payments for 6-12 months
- Ask for the mortgage to be unsecured or secured by a note only
- Ask for early payment discount.
- Ask for substitution of collateral
- Ask for NO PAYMENTS and no interest with a pay-off in X years
- Ask for first right of refusal
Wishing you good luck,
Charles Parrish