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Hope all is well. Few questions. Where is the property located and do you folks plan on putting any money down on the property?
How is both you and your wifes personal credit?
Email me, thanks
We were hoping not to have to put any money down. Most banks I have called want 20% down and we just do not have that.
Both my credit rating and my wife's are excellent.
A little more about the property we are looking at:
The building and business is 15 years old - Roof is 3 years old
Has two offices attached which are both rented out, so we would be receiving $2800 a month in rental income
There are already many bookings for the banquet center into next year
Business has 200ft of highway frontage
Building and lot were appraised a few years back for almost twice the current selling price.
Why don't you give Dan or myself a call and we can go over some ways of how we may be able to make this possible.
Talk to you soon,
We would love to problem I don't see a number in your profile. you can email it to email@example.com
I am running out for luch with a client but I can call when I get bac around 1:30 EST
Congratulations on finding a business that you'd like to purchase.
A few questions...
Of the $550,000, how much of the price is allocated to the business, and how much of the price is allocated to the real estate?
Regrettably, your appraisal from a couple of years ago has little to do with the value of the property today. (And even then, appraisals are sometimes not worth the paper they're printed on.)
The fact that part of the property is rented for $2,800 could be a real boost to getting financing. Still, no traditional lender is going to do 100% financing these days.
If you can really show that the value is there (say the place appraises legitimately for $800,000 or more), you might be able to find a "hard money" lender who will loan 100% of the price. However, the loan will be very expensive (5 points is common, along with a 12-14% interest rate), and the term will be short (usually no more than six months).
However, sometime you can use a hard money lender to acquire a property, then refinance the property on a longer-term basis with a more traditional lender (at lower cost, too). Traditional lenders can do 80% "refinance" loans a lot easier than they can do 100% "purchase" loans, even if the dollars and the collateral are identical.
Would the seller perhaps take back 100% of the financing and then give you time to refinance it? That would cut out the most expensive part of using a hard money lender. Maybe the seller could even hold a small second mortgage to make it even easier to get a new first mortgage (lower LTV).
As always, do your homework before working with any loan broker. Get references, do a lot of research, and never give any money up front unless you are 1,000% certain you are dealing with a reputable company.
Do give me a call, maybe we could work something out
Phone: +44 7031984773
Talk to you soon,
Dennis - 0% down may be tough, but if you can scratch out around 10% (doesnt neccesarily be your own cash), I may be able to help. My contact info is on my profile, I'd be happy to go over some of the fine details with you.
email me I might be able to help.