NEED CASH.....YESTERDAY! - Posted by Cassie

Posted by Cassie on August 11, 2003 at 21:55:23:

Been there done that…It did not work. Thanks for the suggestion, but the locals are telling me that although the equity is their and the past payment history on the building is there I don’t have any credit so the bottom line is NO!. I have always been cash and carry now its hurting me. But thanks for the suggestion

NEED CASH…YESTERDAY! - Posted by Cassie

Posted by Cassie on August 02, 2003 at 23:46:30:

I have tried to refinance a 9 unit apartment house that I bought on a Land Contract. Mkt val is 195k and remaining balance on the contract is 92k. I bought it at 98,5k and did all the fix up at about 25k. I can not seem to get it refinanced because of low credit scores(535) and it being a commercial deal. Does anyone know someone who would like to hold a 1st mortgage. I’m fed up with lenders and would like to establish a relationship with a private investor (Not a typical HML) I have nothing against HML’s I have one on my personal residence. Why don’t I go back to him? b/c my home was the largest amount of loan he had ever done and know he’s technically taped out. At least until some of his smaller loans payoff. Why do I need the cash yesterday?
becasue I want it yesterday to invest in other deals i’ve got lined up. By the way I am looking for a 1st mgt of about 150k. Thanks to all and good luck on your deals.

Re: NEED CASH…YESTERDAY! - Posted by Jim Rayner

Posted by Jim Rayner on August 03, 2003 at 06:54:11:


I get the impression from your comments that you may have not yet taken this deal to the proper lending resource. a nine unit building absolutely is a commercial deal and as such you need to take the financing opportunity to to right door to get it refinanced.

Interestingly that lender is probably right in your own back yard. You have perhaps heard this here in the financing forum but I will restate it: this is the perfect deal for your small local community bank. I don’t mean the local branch of a larger regional bank. Small local community banks have a vested interest in the community as well as a requirement to meet local lending requirments.

If your deal is stable and peforming and will hold up to an appraisal it should be a slam dunk deal at 75% LTV with cash out. On commercial deals your credit is not the most important lending criteria. Often times the local lender has their own credit scoring system so your low FICO might not even be an issue. The local bank looks primarily to the property for the loan repayment.

So put together an APOD, some photos of the property, the rent rolls, a personal financial statement, then call the commercial loan officer for an appointment, and then get down to your small local bank this week. I think you will be pleasantly surprised.