Question on RE financing - Posted by Corey ND
Posted by Corey ND on February 06, 2002 at 13:38:01:
OK here is my problem.
Own a vacant commercial property. Owe 40K on a CFD which is due and cannot be renewed. Have a good tenant willing to rent for 4 years 1st year $950 month, 2nd year $1,150 month, 3rd year $1,300 month, 4th year $1,400 month. Taxes are $2,500 year. Need to borrow $25K for renovations. Total loan of $65K. FMV of $100K - 120K after renovations. Most of the renovations are general cosmetic renovations to the property and need to be done any how.
Here is my problem. Pretty good credit (688 fico score). BUT my debt to income is so so.
Bank says can’t do the loan as I don’t have sufficient income to make payments incase of vacanies. I have made all payments on CFD for the last 7 years and have letter stating so.
Any ideas on how to finance this property?
Seems crazy to me. There would be plenty of cash flow and plenty of equity in the property.
SO how does the “little” guy get anywhere?