Results 1 to 4 of 4
-
09-27-2018, 12:58 AM #1
- Join Date
- Dec 2017
- Posts
- 277
$400,000 Real Estate Loan
Hi,
The merchant is 100% owner of a general auto repair shop located in New York which has been operating for 14 years.
The shop averages $45,000 in deposits per month.
Credit score is 740.
The merchant owns a commercial property appraised for $1,200,000 and owes $300,000 on the mortgage.
The merchant is seeking $400,000 which is 20% of a $2,000,000 commercial property he is looking to purchase to renovate and rent.
The business shows a loss for 2017.
Merchant is rate sensitive.
I’m trying to figure out the best way to structure the financing.
Your input is appreciated.
Thank you.
Michael Sla*****er
msla*****er@sla*****er.com
-
09-27-2018, 06:47 AM #2
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
Morning Michael.. There are folks on this Blog (Velocity, Apex, Silver Hill) that can do a 'stated' income 'cash out' loan on the existing property- however they may wish to have a say in the disbursement of funds. Likely quickest and easiest way to go is to get 60-65 LTV Hard Money deal- interest only- 10% plus points (your 'cost' will likely be 3) which will give client the DP for the 2M. If the client seeks financing on the 2M- they are likely going to be around 100-200k short due to losses- and that they can't qualify for conventional finance.
Perhaps seller can hold a note for the remaining 5-10% to get it done. Those same names I mentioned earlier might like the 2M deal- depending upon how much capital will be needed for renovation- and of course appraisal and ARV.
I always smile when I hear a client showing losses on 540k per year in top line- being rate sensitive. He can't walk into his bank and get it done- that's a certainty- if he could he wouldn't be speaking to you. Accordingly I recommend trying to create realistic expectations, and see if he is realistic. If client believes he can do better than what I described- you know the client will be a time suck.
As for the initial hard money loan: I represent local investors that like NY Metro Properties/deals like the 1.2M cash out. If they like the deal we know immediately. They tell client to order Title- and if all is clean they close swiftly- many instances no appraisal is needed (just a BPO). Touch base if you would like to discuss further.
RG 516 510 3855
rg@businesscapitalconsultants.com
-
09-27-2018, 09:45 AM #3
- Join Date
- Feb 2017
- Location
- Fort Washington, PA
- Posts
- 37
Scott Buchholz
Account Executive
Velocity Mortgage Capital
215.619.2543 Direct
sbuchholz@velocitymortgage.com
-
09-27-2018, 10:40 AM #4
if velocity turns you down because of enviromental issues, give me a call - being that its commercial / auto repair, they will most likely want a phase 1 enviromental ( phase one looks at any structure that has been located on that parcel for the past 10-15 years for indicators that there could be contamination ) being that its an auto repair facility that stores cars /oil /antifreeze etc... they will turn it down.
Hopefully they dont ask for a phase 2 because that could get pricey and if they locate an issue, he will start getting mail and calls from the epa.Last edited by Jstarr; 09-27-2018 at 10:44 AM.
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
Similar Threads
-
Real Estate Loan
By AidanQS in forum Deal BinReplies: 7Last Post: 05-16-2016, 11:53 AM -
Real Estate Bridge Loan
By helpinghand in forum Deal BinReplies: 4Last Post: 11-20-2015, 12:46 PM -
Real Estate Loan $15k
By jpos in forum Deal BinReplies: 4Last Post: 02-07-2015, 02:13 AM -
Commercial Real Estate Loan
By FUNd in forum Deal BinReplies: 6Last Post: 12-30-2014, 02:51 PM -
Loan for real estate investments
By mrmcfadden in forum All Other LendingReplies: 5Last Post: 12-30-2014, 12:38 PM