90% Commercial on Care Homes? - Posted by David

Posted by Ed Garcia on October 15, 2003 at 09:55:23:

David,

Just by the way you wrote your post you have not broken down the return accurately.

When you purchase a care home, you?re purchasing a business as well as real-estate. You have reflected the income of both the business and the real estate. The property would more then likely not generate the income projected with out the care home.

My suggestion is for you to find out what the property would get in rents if it were not a care home. That will give you a better handle as to market rents of the subject property and true value of the property without the care home business. They have to be separated.

Ed Garcia

90% Commercial on Care Homes? - Posted by David

Posted by David on October 14, 2003 at 15:52:15:

I am seeking to get 90% financing on a $650k care home with a 24% cap rate, and the best I can find is 80%… Any ideas / suggestions / hints / help?