Commercial property finance

Questions and Answers

How do i raise £50,000 for a deposit on a commercial property cheaply ?

Q) I have outgrown my workshop and need to get a bigger one but i dont have the finance to put a deposit down.

A) Make better use of what you have - consider longer working hours, consider different working practises (can you reduce the space / time required for some jobs ?) consider 'cherry picking' work (i.e. accepting only high value work) consider 'targeted' price increases = identify non- / low profit customers (and type of work) and put up the prices you charge those customers (and that type of work) - if a non-profitable customer departs this will free up capacity to take on more profitable work consider increasing prices on work that takes up the most resources (space / time) If all else fails, consider making across-the-board blanket price increases until the amount of work no longer exceeds the capacity of your Workshop. Save the extra revenue until you have sufficient for the deposit

How to invest into the US property market as an Australian resident?

Q) How can I obtain financing to invest into commercial property (4 to 8 condos). Do I approach Australian banks or are there US institutions that cater for overseas investors? What are other implications - are there tax breaks or do I have to expect some form of penalising taxes? In short, I don't know the first thing about this issue... please point me in the right direction.Thanks

A) You will need to speak to a bank or lender that is able to lend in the US and has a foreign national program. Some foreign banks have a branch in the US (NY or CA or FL) and are able to cater to their home country borrowers. BUT, that is not the only way to get a mortgage. Find a lender that has foreign national programs and lends in the state you are looking to acquire property in. Most foreign national programs require substantial assets and cap your loan amount to 75% of the purchase price (for 2nd or vacation homes) and 60% of the purchase price on non-owner occupied properties (investments). There are a few programs that allow higher limits, but again speak to a lender that has foreign national programs. If you want some more info, drop me an e-mail. Hope this helps,

How do you finance a large commercial property?

A) with a large commerical property loan.

I am looking for a commercial mortgage lender to finance this property that I rent and have a business & live?

Q) I own a business but rent the building and also live in the building. I need to buy the building. I have been here 4 years with a growing bsiness. It also has a rental trailer on the property for income. I need a mortgage lender to help me finance it.

A) this is whats called a MIXED USE property, and if you have been affording the rent, then i know that you can easily afford the mortgage (thats how the banks see it too) i do these kinds of loans regularly. i have so many differant programs for a situation like this, that i am confident i can help you. i dont charge for app fees, and consultation fees, and will custom tailor you a loan program free of charge.(this way, if you are unhappy with what i can do for you, there is no pressure or commitment on your part) i enjoy my work, and i look forward to working with you. call me at 203-729-8900 x111, ask for david powell, or call my cell phone at 203-410-4427, i will take your info, and get back to you in 24 hrs with a loan program. i want you as a client, lets get started.

Commercial property?

Q) I am put up against a wall, and getting way too stressed out. My business has been operating out of a building for 6 yrs at dirt cheap rent, now the kids of the previous owner inhereted the property and want to drastically raise rent or force me to buy- or I am out on the street. WHERE would I go? I dont think its feasable for my company to buy right now. I have about 40% of the total cost saved. But would have to mortgage the rest. I need time but they are rushing my decision. ALSO this is my inlaws were talking about.. I just hate to miss the oppurtunity to buy this- even thought the economy here sucks. I feel it could be a good investment down the road. The place is a bit bigger than what I really need. But some outside areas could be sub leased to people to park??? Just too much to take in at this time and I am being pressured. What do I do? I dont want to risk my company, family, finances.. but I do need a place to operate my business out of. Do I downsize /find a storage lot?

A)

Were can I find a company or mortgage broker that can find or finance small Commercial and Multi Family loans?

Q) I am currently in the market to buy a five unit multi-family property listed at $180,000. Because it is considered a commercial property I’m having a hard time finding a lender that does commercial loans under $500,000. I should be able to put 20% down by drawing equity out of another propriety so I don’t foresee there being a problem financing it. I would appreciate any suggestions.

A) I do this type of loan. Please email with some of the detail at JohnG@oldmerchants.com

I want to know the basics about investing in Commercial property.?

Q) In detail: Loan process, qualification and requirements. I am a Real Estate Agent (residential only) and want to invest in commercial property but I am not sure where to start. What requirements are there for the loan. Can you get 80% or more financing. I really would like some input. I will provide more details if needed. Thx yall

A) That's a big question Here's a good site for info: http://www.imperium-commercial-capital.com/ Please let me know if I can help with residential loans in CA 800-560-5445

real estate developing - how to finance commercial condo construction?

Q) My husband and I have not done this before, we have no clue where to start. We have found an amazing location to purchase land and build a small condo development to make multi millions in profit. Where do we start for financing?! We would need to borrow $1.5million (this is including the land)... we are willing to pay a high interest rate... we just need to find some way to finance this! help! We don't have alot of money (50k in bank), medium income (80k yr), don't own any property, don't even have a business set up yet. Is this even possible for us?! I have tried to email commercial brokers but none of them will talk to me because I don't know all the technical details. Anything you can suggest please, we need help! ps.. how do i find investors to partner with for the downpayment that we can't afford? who is going to invest $300k in people who have never developed before! :( for john doe below - you're being a dick, period. you actually have no idea about the details of our situation therefore have no right to speak to me as you've done. i was looking for advise on financing not to get told we are just dreaming. im not ACTUALLY a retard and have done the calculations considering we would have to pay a huge majority of our profits to investors (of course) and we would STILL come out with multi millions. so if you wouldnt want in on this investment after only reading two quick simple paragraphs lacking all and any detail, then thats your lose for not looking into the potential of things and being a big fat pussy really. have fun making all your money on your low risk investments, rich boy. im sure you're loaded.

A) You need about 20 to 30% of the 1.5 million to come from you own pocket. If you don't have the money they need to partner with an investor that is willing to put it in. If you owned a home you could take cash out of it and use that.

Can you purchase a commercial rental property without cash?

Q) Say the property was $200,000. And through an LLC can I finance the $200,000 as a new LLC without any company credit or assets. Say that they want %10 down also. Could I personally garauntee the $20,000 myself and lend that to the LLC. So then the LLC can make the down payment. So if i did it that way could I then finance the other 90% with the LLC. Cause I was always under the immpression that commercial rental properties are not valued like a home. That the loan is based on the actual property itself(the value of the building). So the loan amount wasn't based on assets that the LLC already had, but that it could be based on what the building was worth. Please help. thankyou closing fees and transaction fees realy has nothing to do with it. You can get the seller to pay or you can finance them in with the building. thanks though

A) There are a couple of things you an do to acquire this property. None of which is without coming up with a down payment and you have to have cash, unless the current owner is gonna take back the financing themselves. Most lenders want to see a down payment of 20% or more for any entity to purchase a commercial property. If the LLC has no credit history or money in the bank chances are you will have to personnally guarantee the loan yourself (Called a Re-course loan). Even if you placed any funds in the bank account of the LLC it has no banking history or what is known as seasoned funds. The LLC also has no history of earning any money, so it can not prove how it can repay the loan,under any circumstances. We are now at financing the loan. With your 20% down and you placing the property in the LLC's name you would have to guarantee the loan personally for the other 80%. You may use the LLC's checks to repay the loan, thus giving it some history. What is your reasoning for wanting to do this property this way? Are you attempting to establish credit for the LLC? If so there are other ways of accomplishing this. Building corporate credit is like building personal credit, it takes time and baby steps. Who do you know will lend a 18 year old high school graduate $200,000 with no credit history, no job, or means of paying back the loan? The same applies to a corporation. I hope this has been of some use to you, good luck. "FIGHT ON"

The appraiser of my commercial property, apt. bldg, went into a bad neighborhood for his comps, can I sue?

Q) I own an apartment building in a nice neighborhood. I wanted to re-finance the building. The appraiser, who was hired by the lender, and lives 2 hours away went into the bad neighborhood two miles away from my property, and used those as comps. Not too much has been sold in my hood for a couple years. he came in about half the value. Can I sue him? Who do I sue. This is 100s of thousands $$$ of loss. He is comparing my property, to those in crack neighborhoods. WHAT CAN I DO??

A) You really have no basis to SUE, per se, but you CAN challenge the appraisal. The way you would do this is to have the comps pulled from your area, or a comparable area, and redefine the value. At that point you contact his supervisor, and make a complaint, and ask that it be reevaluated using the appropriate comps. There are several basis for making an appraisal...recent home sales, and income basis are probably the most appropriate for your situation. I suggest that you contact a Realtor, that has access to the MLS to assist you in looking up recent sales in your neighborhood to find the appropriate somps, and to have them do a CMA. A good Realtor, that knows your market SHOULD be within 5% of fair market value. Once again, since the appraisal is only a professional OPINION of value, usually the only liability that an appraiser can incur is that of the price of the appraisal. However, if you can prove gross negligence, then you can report it to the state licensing board, and you may get somewhere with them. I recommend that you start with getting a CMA, to ensure that you have a REAL case of negligence, and then that you challenge the appraisal from within the company. If all else fails, have another one done. They are not cheap, but you may consider it for your peace of mind. Remember, the appraisers do NOT work for you, they work for the bank, to ensure that the bank does not get stuck with a below-market valued property. Complain to the bank. If they value you as a client, they will listen.

Any No Doc, Stated Income Commercial loans out there?

Q) Looking to purchase land, and build income property, warehouses, and need to do it without income verification AND little to zreo down payment... I have decent credit, 745, and currently own 2 houses, one as my primary residence and another as income property... Any loans/lenders who can supply 100% financing with a no doc or stated income loan for commercial property? Loan amount will be $900,000 Thanks

A) Check with LNB Commercial Capital you can find them on the web

100% commerical loan?

Q) Does anyone know of any lender that would do a 100% financing on a commercial property with guaranteed rent? It's rented triple net NNN to a national credit merchant.

A) in reality no lender will do a 1oo financing esp today's market where the 100% residential is gone