I bought the building 2 years ago on a owner contract.
I paid 135k for it.
I have been carring aprox 5200 a month in bad debt.
I live here and need to find funding to get the old contract paid off and establish a new contract.
my payments on the building are 1,000 a month. I need to cash out the owner pay off some bad debt and make another deal.
If I have to pay 1600 a month on my money that is a lot less than what I pay now on my debt Follow?
still looking for funding 225k you name the terms
Thank You
Stan
Need five year contract for 225,000.00, you name %
Commercial block building on 106x108 lot all city services.
600sqft office with 1400 warehouse space.
3/1 above 1500 sqft apartment.
lower rent 800.00 upper rent 750.00
tax 1200 year
Posted by John Corey on November 01, 2005 at 17:22:42:
Stan,
What is the property worth and how was the value determined?
If we use a normal commercial process of capitalizing the NOI the numbers will likely not fly.
As this is mixed residential and commercial there are not many lenders out there that will go for this property.
Have you approached the present note holder about paying off part of what you own them and then continue to make payments to them? If they will subordinate (move to 2nd position in this example) you could get a new first in there (not a great loan), use the new 1st to pay the person who moves to second and still be better off than the present debt you are servicing.
It makes a tough situation better but it is not really a property solution.
You did not mention much about your credit. Should I assume that your credit is not great?
90% LTV finance $202.5k @ 7.5% = $1,416/mo. Add taxes $100/mo & insurance (low est) $40/mo =$1,556/mo. Just how is this deal profitable? Is it drastically undervalued & you are looking to just hold it for a few years to let it appreciate more, because from a monthly cashflow standpoint, this is no cash cow.