How do these terms sound ? - Posted by Robert


#1

Posted by Laure on January 17, 1999 at 22:00:19:

sounds the same as my commercial lender gives me, except I don’t pay points. See if you can get him to drop them !

Laure :slight_smile:


#2

How do these terms sound ? - Posted by Robert

Posted by Robert on January 17, 1999 at 21:04:39:

Hi

Being a newbie, I just wanted to run this by you for some feedback. Seller accepted my offer to purchased his 4 flat for $75,000 ( comps are 85-90,000). We plan on keeping min. 5 yrs will be non owner occupied. Owner is taking back 2nd of 20% with 5 yr ballon. Just spoke with a broker who said he has a commerical lender who can do this deal with owner taking back 2nd and using 5% my money. He then ballparked me on the terms; 3 yrs renewable at 8 1/2 to 9 % int., 2 points, $500 for appraisal,
and about $200 in closing cost but could be more.Does this sound ok, like not to use own money but cant find any lenders.

Thanks


#3

Re: How do these terms sound ? - Posted by SCook85

Posted by SCook85 on January 17, 1999 at 23:04:52:

The first thing I would do is tell the broker to not go for a commercial loan. A 4 unit is considered a residential property and qualifies for residential loans. The appraisal will come down and terms will be better.

SCook85


#4

Try this on for size - Posted by Bill Mooney

Posted by Bill Mooney on January 17, 1999 at 22:53:54:

Robert,

Sounds ok but still using you own money. Try lease optioning the building after you close. Ask for $10,000+ or - for an option consideration and you won’t have to worry about being a landlord! Just keep getting those check from the new tenant/buyer!

Bill Mooney