Here’s my situation .I am “possibly” going to aquire a 30,000 square ft.bldg.for pennies on the dollar .My vision is to make the bldg. ready to rent for retail and food establishments the building consists of 36 rooms .I have $200,000 to put into the deal .Im guessing all said and done the total renovation including aquisition will be around $600,000.How do I get financing , IE; what types of loan? (Im paying cash for the bldg.)what are some terms scenerios?
Thats crazy. what happened to the replies that were here an hour ago?
I would try using HML…
Trying to stay away from that .I have excellent credit and own an LLC that has been in Bus for 3 years.
But campbell…down the road all investors get into HML. They give you excellent terms, 6months no prepay many times and enough time to refi the property with some seasoning. You just need to work the interest rate and fees into the deal to see if it works…
Most rehabs are done with HML when your cash poor, want to wait 6months before making a payment so it gives youi enough time to rehab and flip or L/O, or not wanting to use your money at all in the deal. Also some HML will not report the loan so no inquires and hits on your credit
It sounds as if the property is not presently cash flowing. In a case like this the risk to a lender is high. You would either look at is as a development loan or a hard money loan on a non-cash flowing property.
With the cash injection you outline, it would seem that you would have sufficient investment to solicite both sources. Look to the smaller regional and local banks that will pick up good development loans on commercial property in that range. Larger banks are generally more conservative. If you go hard money route remember to position yourself to refinance as soon as you are leased up and establish cash flow. Start the refinance solicitation earlier rather than later.
Where is the property located, we may know a source in that area.
Well I didnt get the property but Yes it was not cashflowing.Where do you all get your hard money.Ive borrowed many HML’s and they were all 3 points up fromt or 4 on the back , 15% interest only , first payment due on the 1st (same as traditional) on the 1st month after the loan is issued I’d pay 20% interest if I could wait 6 months to make 1st payment.