I am new to rei and have been getting to know the people in a couple of my local rei clubs. My interest is mainly commercial and one really nice guy has been very helpful with his tips and advice. We were discussing a mutual acquaintance who had been having financial difficulties and wound up putting some of his commercial properties on the market because he just couldn’t keep up. I had actually seen a couple of those properties and had run the numbers, drooling and hoping… They are always well rented and the rents are high dollar. A great location but as it turned out they were WAY overvalued.
Anyway, my friend was telling me about a lending program that would help get the principal reduced on commercial properties. It’s a group of private lenders and they only deal with commercial properties - they can get the loans refinanced or rolled over. He had one property refinanced with them so that his payments we cut almost in half. He went on to say that it was too bad that this other guy hadn’t been able to take advantage of that program before he lost some of his properties (he just didn’t know about the program at that time and I’m not sure how much it could have helped him anyway).
My friend went on to tell me that another key point to this program is that the redone loan is assumable. What he was really telling me was that if I came across another investor who was in serious trouble (like a lot of people seem to be) and had a property that was of interest to me, it could be handled creatively so that the property got a new loan and then I could assume the loan and get the property at really good rate. That sounds like a good strategy, but I’ve been getting my feet wet with lease-options first.
I’m sure that most of you more seasoned investors know about this program or others like it, but as I’m still new to this I found it very interesting and thought it might be a good thing to share here. The only small catch that he told me was that the property had to be worth $1M+ (and commercial of course).
I have no affiliation with the lender, but for anyone that is interested in taking a look at this I’ll be glad to pass on the contact information. I’ve gotten a lot of great advice on this forum and just thought someone might find this helpful. It seems that anyone would be interested in getting a better rate on their loan whether they were in trouble or not, right?
I’m not sure if it’s allowed to put that info into a post, so you can PM me and I’ll be glad to tell you how to contact them, or reply and tell me you’re interested and I’ll forward it to you.