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Message
Buying commercial property in baton rouge
Posted on 1/10/12 at 2:09 pm
Posted on 1/10/12 at 2:09 pm
Do you really have to have 20% to put down? Is there a way to finance that into the mortgage? It will be for a business-been renting for 8 years, ready to buy.
Can someone recommend an agent?
Can someone recommend an agent?
Posted on 1/10/12 at 4:16 pm to Jabberwocky
Yes, you have to have some skin in the game these days. For an owner occupied building, you can do 85% LTV (most banks).
Two other options:
Get financing from the bank for 80%. Put 5-10% of your money into the transaction. Let the current owner take a note back for the rest as owner financing. Some banks will do a loan for 80-85% LTV and let the owner take a note back for 20-25% equity. Not many, but there are some out there still. Most want skin in the game from the Borrower.
Or, you can find a bank that does SBA 504 lending. That will get you up to 90% LTV. A little pricey sometimes, but it gets you where you want to be in terms of a low down payment and long fixed rate.
Two other options:
Get financing from the bank for 80%. Put 5-10% of your money into the transaction. Let the current owner take a note back for the rest as owner financing. Some banks will do a loan for 80-85% LTV and let the owner take a note back for 20-25% equity. Not many, but there are some out there still. Most want skin in the game from the Borrower.
Or, you can find a bank that does SBA 504 lending. That will get you up to 90% LTV. A little pricey sometimes, but it gets you where you want to be in terms of a low down payment and long fixed rate.
Posted on 1/10/12 at 9:38 pm to Im4datigers
quote:
Get financing from the bank for 80%. Put 5-10% of your money into the transaction. Let the current owner take a note back for the rest as owner financing. Some banks will do a loan for 80-85% LTV and let the owner take a note back for 20-25% equity. Not many, but there are some out there still. Most want skin in the game from the Borrower.
Posted on 1/11/12 at 8:22 am to Tiger4Ever
Knew that would get a comment from you!
I didn't say all, I said some! And it isn't that bad of a deal on an owner occupied building with the operating company and individuals guaranteeing the debt (assuming it's a strong company)! We're not talking a shopping center deal here!
And I said most banks want skin in the game.....Fill your glass back up, it's half empty!
I didn't say all, I said some! And it isn't that bad of a deal on an owner occupied building with the operating company and individuals guaranteeing the debt (assuming it's a strong company)! We're not talking a shopping center deal here!
And I said most banks want skin in the game.....Fill your glass back up, it's half empty!
Posted on 1/11/12 at 9:39 am to Im4datigers
Does that owner's note appear on the borrower's FS? I suspect at "some banks" that do these types of deals it doesn't....
But I'm not the most optimistic person....
But I'm not the most optimistic person....
Posted on 1/11/12 at 9:53 am to Tiger4Ever
quote:
Does that owner's note appear on the borrower's FS? I suspect at "some banks" that do these types of deals it doesn't....
It's Louisiana man, of course it doesn't. It's a handshake deal.
Talk about difference in borrowers between LA and DC. Man, night and day in sophistication and knowledge of why we do the things we do. They don't live under a rock like the borrower's we had in LA. They get it
Posted on 1/11/12 at 10:10 am to Im4datigers
quote:
It's Louisiana man, of course it doesn't. It's a handshake deal.
Well, that's loan fraud then...
Just playing devil's advocate for the OP...
This post was edited on 1/11/12 at 6:51 pm
Posted on 1/11/12 at 10:18 am to Tiger4Ever
Why don't you go back to enjoying the meltdown over on the rant.....let us be optimistic within the money board!!!
Posted on 1/11/12 at 10:28 am to Im4datigers
Playing Jefferson the entire game was a fraud of a more serious nature than this...for sure.
Posted on 1/11/12 at 9:05 pm to Paul Allen
Keller Williams is a residential realtor.
Look up Karl Landreneau NAI Latter and Blum on Jefferson.
Look up Karl Landreneau NAI Latter and Blum on Jefferson.
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