Posted by Mike on September 16, 2003 at 21:41:36:
If you can take out a Line of Credit on your home, use that for the downpayment and finance the rest. good luck.
Commercial Deal, Looking for help… - Posted by Dean
Posted by Dean on September 14, 2003 at 21:57:15:
I am in the process of buying a property that includes my Office space and 2 rental units(2 and 3 bedroom). I’m buying the property from a friend of the family. Property appraises at 450K and the purchase price is 350K. The owner is not willing to carry a second at all. So far I’ve been offered SBA loans at Prime + 2% with 10% down. I’d like to get in with 0 down or maybe even cash at closing. My Credit is good (775), any ideas or help out there? Thanks!!!
Re: Commercial Deal, Looking for help… - Posted by Derek
Posted by Derek on September 18, 2003 at 12:49:11:
Sounds like a plan…
Yes! You also have some other potentials for lease options and no money down…
1.If there aren’t any tenants yet, raise the rent and pay off the owner and you have free office space
2.Act as a real estate investor and sell the building at a higher price than which you are purchasing and pocket a nice profit while giving your friend the asking price…Yes, this strategy allows you to get out fast without having any debts and provides you with cash flow from tenants until closing at sell for a bigger profit
3.Purchase the property with another investor or have an investor to purchase the property while you manage it and have free office space…This way you can make a profit from the tenants when you raise the rent and pay off investors their share because they don’t have to know how much you charge for rent as long as they get paid their agreed sum
Let me know if this has helped…I’m always glad to hear from you anytime…STAY ON FIRE!
Re: Commercial Deal, Looking for help… - Posted by Jason Ringo
Posted by Jason Ringo on September 16, 2003 at 21:20:24:
Two way to do the deal…
- use collertal you have in other property of assets
2)Rise the sales price and get him to take a second…
he gets the same cash out of the deal…Then when the transaction is complete you can buy the 2nd mortgage from him for $100
Re: Commercial Deal, Looking for help… - Posted by cam
Posted by cam on September 15, 2003 at 09:39:33:
Your only real option is a local bank. 99% of all banks will require that you have at least 10% (more likely 20%+) from your own funds regardless of how high the appraisal is. I have seen very few exceptions to this. In one case, a small local bank did lend a friend 100% of the funds he needed to purchase a building for his business. Prime +2 with 10% down is probably about as good as you will get.