Financing everything HELP ! - Posted by MB

Posted by Ed Garcia on January 01, 2001 at 21:38:09:


I don’t know who gave you the idea of pooling all of your assets into one loan, but it’s NOT a good one.

First of all construction loans and permanent take out financing, are two different types of loans, designed to do two different things. The correct way of doing this, would be to get a construction loan to build houses on the two lots, and then get individual, what we call “take out loans”( permanent financing) on each property, allowing diversification.

I can appreciate you doing what I call “clean up your financing” meaning having definitive financing accomplishing maximum results.

Even If I were to put your financing together under temporary circumstances under a blanket loan, or cross collateralize, I would want to make sure I had release clauses.

What you haven’t given us is NUMBERS. We don’t even know if your numbers based on individual properties, what’s owed on each property, LTV’s and equity position, will work? The Cash flow is also questionable; due to you haven’t discussed it, or told us how much you would spend to build on the two lots, what you would build on the two lots, and what type of income could be expected in return?

The commercial building that you’re lease/optioning, and are considering purchasing, could be bought with some creative financing as well, such as having the seller carry back in second position etc.

MB, I’ve got to tell you, that if ever there was a deal to be discussed, where I could be instrumental in working it, it’s yours.

MB, I don’t know what state your in, but you are more than welcome to call me at (909) 944-0199 and I will glad to help you structure your deals.

MB, I’d like to wish you and your family a Happy New Year,

Ed Garcia

Financing everything HELP ! - Posted by MB

Posted by MB on January 01, 2001 at 19:04:46:

Hello an Happy New Year.
Iam a real estate investor(so I think).I have two single family rentals.Three years renting on one,and two on the other.Also we have a piece of raw land in a single family development.The land has two lots and we would like to build two rental properties on it sometime in the future.Our primary house we also would like to rent.
We have a small business and just lease optioned a building.We wanted to get a loan on everything(Secured)to operate the rentals plus build two more.Our lease optioned commercial building would be bought and our rentals should cover all expenses.I think you understand my needs for one long term loan(20 to 30 yr).We are triple aaa credit.Any help would be great.