Posted by Terry(IN) on February 28, 2002 at 11:52:04:
Brian,
CLTV means combined loan to value. The combination of the lenders 75% plus a 20% carry back by the seller. So with a 95% CLTV, the lender is wanting the buyer to come into the deal with 5% minimum. That’s if the seller will agree to a 20% second. Hope this cleared up the confusion.
20% down for commerical a good idea? - Posted by Jason DeFay
Posted by Jason DeFay on February 26, 2002 at 14:27:07:
My wife and have been buying rental properties in Southern California for the last few years. But when it comes to financing, we need some advice. We built up sweat equity in our first purchase, took the equity and bought an additional set of units w/ 20% down. Now that those units have had some equity built up in them, we did a partial reconveyance with the lender and managed to get 1/2 the property free and clear. Now we are in the market to buy commerical apartments, but from reading the posts on this board, I have some questions.
My loan broker says I need to come in with 25% down for commercial financing, so I’m looking at pulling out as much as I can from the free & clear property (probably about $100k). Unfortunatley however, at 25% (or $100k), this only allows me to purchase a commercial property in the $400k range and I’d really like to leverage my $100k more than that. What other creative financing strategies should I look into to get more bang for my bucks?
Thanks!
Re: 20% down for commerical a good idea? - Posted by Terry(IN)
Posted by Terry(IN) on February 26, 2002 at 20:18:11:
Find a loan broker who can put together a 95% CLTV. Then find a seller who is willing to carry a 20% second. That means that you only have to come up with 5%. If your loan broker says it can’t be done, email me.
Re: 20% down for commerical a good idea? - Posted by Brian
Posted by Brian on February 27, 2002 at 22:29:25:
If you find a lender willing to commit to 95% LTV, what is the other 20% for?