Auto Sales, 80% LTV, Stated, $950k Sale Price

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johnhoefer

429 Posts

Posted - 04/03/2008 : 8:09:15 PM

The buyer owns his home and current auto dealership free and clear. The buyer is refi-ing the house and pulling out $190k. 67% LTV on the home with a 702 mid-fico score, should go through I believe.

Is refinancing the home for the down payment the best option since the rate will be lower than refinancing the business property? Or would a blanket loan be possible with the down payment being the equity in the second property?

Advice would be appreciated.

If the current transaction is the best way to go, home refi-cash out for DP, let me know your longest ammortization period please. Auto dealership = lots of land, asphalt, little building, nothing fancy, not a flagship type property.

No brokers, already hooked up with one, 70% split.

mantixmortgage

2767 Posts

Posted - 04/03/2008 : 8:12:21 PM

is he going full doc on his home refi

EMScommercial

5141 Posts

Posted - 04/03/2008 : 8:25:40 PM

let me see... you are on broker outpost and then you say... the line 'no brokers'.... since you are so hooked up with your broker... maybe she can get you your needed answers.... just a suggestion...

johnhoefer

429 Posts

Posted - 04/03/2008 : 9:00:09 PM

quote:
Originally posted by EMScommercial

let me see... you are on broker outpost and then you say... the line 'no brokers'.... since you are so hooked up with your broker... maybe she can get you your needed answers.... just a suggestion...

Let's see...

I am on broker's outpost and I am an appraiser full time, LO part time. So there are other people besides brokers on this site. Like me, check out the appraiser title.

Let's see...

There is also a title called wholesale lender. I was trying to save some brokers some time, do you like wasting time?

Let's see...

You add very little to any thread/discussion except for lame remarks or your sales pitch. You get pissy when you are not allowed to do your sales pitch. Sales is a numbers game, I let you move on to the next one without wasting time.

Let's see...

Your signature is more than 5 lines and illegal and annoying to read on any thread you post on. Therefore, between your content and your signatures, you really don't add much.

have a good night

just a suggestion.

johnhoefer

429 Posts

Posted - 04/03/2008 : 9:04:06 PM

"is he going full doc on his home refi"

I am not involved with the residential loan. The seller's agent just called me about the commercial loan. I help her out valuation wise with her sales pitches to prospects for listings.

I will check tomorrow, are the rates for commercial stated and residential stated comparable?

mantixmortgage

2767 Posts

Posted - 04/03/2008 : 9:15:49 PM

"are the rates for commercial stated and residential stated comparable?"

not in my experience, no. stated commercial is like 8's and 9's

johnhoefer

429 Posts

Posted - 04/03/2008 : 9:16:39 PM

Actually, EMS, I partially apologize and won't delete what I said, but here you go. Your "thirds post" was actually very helpful and kind of ra-ra, I liked it. Thanks.

But, I post at 8:09 CA time, or 11:09 Florida time. You really feel the need to post a nothing response at 11:25 your time that is helpful to no one. Are you serious? Loan scenarios are posted all the time on here, by other mortgage agents, do they all co broker them? How about the residential ones with RESPA? Annoying to say the least.

But I guess you have added valuable content before. Nice work.

ppulatie

2278 Posts

Posted - 04/03/2008 : 9:16:49 PM

quote:
Originally posted by johnhoefer

quote:
Originally posted by EMScommercial

let me see... you are on broker outpost and then you say... the line 'no brokers'.... since you are so hooked up with your broker... maybe she can get you your needed answers.... just a suggestion...

Let's see...

I am on broker's outpost and I am an appraiser full time, LO part time. So there are other people besides brokers on this site. Like me, check out the appraiser title.

Let's see...

There is also a title called wholesale lender. I was trying to save some brokers some time, do you like wasting time?

Let's see...

You add very little to any thread/discussion except for lame remarks or your sales pitch. You get pissy when you are not allowed to do your sales pitch. Sales is a numbers game, I let you move on to the next one without wasting time.

Let's see...

Your signature is more than 5 lines and illegal and annoying to read on any thread you post on. Therefore, between your content and your signatures, you really don't add much.

have a good night

just a suggestion.

Stick with being an appraiser. It is obvious that you don't know enough to be an lo. Or you would already have the answer to your question. Also, in this industry, you must specialize in one field or another. Mixing them means that you will end up doing one badly.

BTW, your exclusion of brokers and lo is plain dumb. They are the ones who can direct you to the right resources to get answers and get the job done. And they would gladly have helped you, if you had not been so arrogant in the first place.

Lenders are only going to focus on their products and what they can do to get the deal.

ppulatie

2278 Posts

Posted - 04/03/2008 : 9:20:42 PM

Okay, you are not doing the loan but helping out the seller's agent. Why is she asking about it in the first place? That should be the lo doing the loan's responsibility and she should stay out of it. Unless the agent is trying to double dip. And if so, she knows not what she is doing.

johnhoefer

429 Posts

Posted - 04/03/2008 : 10:20:33 PM

I am not sure about the rules concerning being the agent on the commercial property and doing the home loan for the down payment. I figured there wasn't one since they are separate transactions.

dkendall1979

10974 Posts

Posted - 04/03/2008 : 10:32:02 PM

John, what's he buying? I read your post several times and it doesn't even say what he's buying?

You've got his occupation "Auto Sales" then 80%... 80% of what? is there real estate involved?

Man, my head hurts after searching between the lines on this one.

Clean it up a bit and we'll do what we can for you.

ComLender

1266 Posts

Posted - 04/03/2008 : 10:36:16 PM

If they pull cash out of the home, we could use it as DP for the auto deal at 80-85% LTV and primarily use projections for the financials.

KHufford

6434 Posts

Posted - 04/03/2008 : 10:52:26 PM

John,

Chris does have a good point...

Im not trying to be rude, but what did you mean more specifically about the comment about already being hooked up witha broker, 70%? What is that relationship and what did you mean by that?

If you can kind of enlighten us I think we could offer you better advice as a whole.

let me know..

johnhoefer

429 Posts

Posted - 04/03/2008 : 11:37:46 PM

quote:
Originally posted by KHufford

John,

Chris does have a good point...

Im not trying to be rude, but what did you mean more specifically about the comment about already being hooked up witha broker, 70%? What is that relationship and what did you mean by that?

If you can kind of enlighten us I think we could offer you better advice as a whole.

let me know..

I probably could have put it in a less off putting way maybe "no brokers please", but I didn't want other agents sending emails etc. Last time I put up a request I ended up exchanging numbers with a lender or posing as a lender and he called a couple times and was obviously just trying to get the address. The fee agreement hadn't been signed yet. For the honest brokers, like most here, it would be just a waste of time anyway. This is a place to get business.

Otherwise I gain a lot of knowledge from the brokers around here and like to give when I can, especially defending against the "comp check" invasions.

KHufford

6434 Posts

Posted - 04/03/2008 : 11:40:14 PM

Ok, I totally get that, thats very shady of whomever called you.

But you didnt answer my question, what is your broker relation that you said you had? What do you mean by that specifically? I am trying to help you in the right direction here...

johnhoefer

429 Posts

Posted - 04/03/2008 : 11:46:28 PM

quote:
Originally posted by dkendall1979

John, what's he buying? I read your post several times and it doesn't even say what he's buying?

You've got his occupation "Auto Sales" then 80%... 80% of what? is there real estate involved?

Man, my head hurts after searching between the lines on this one.

Clean it up a bit and we'll do what we can for you.

Gotcha. The buyer is purchasing a second auto sales property. He owns his current property free and clear and his home free and clear. He is pulling out the DP for the new auto sales property from his home. Less up front fees and generally lower rates.

The property is a specialty property and can't really be used for anything but auto sales due to the building/land ratio and the surrounding uses are heavily auto sales. I checked some lenders like Mission Oaks but their highest LTV for a specialty auto property was 70%. Scottsmans guide was only slightly helpful.

Thanks

johnhoefer

429 Posts

Posted - 04/04/2008 : 12:02:38 AM

quote:
Originally posted by KHufford

Ok, I totally get that, thats very shady of whomever called you.

But you didnt answer my question, what is your broker relation that you said you had? What do you mean by that specifically? I am trying to help you in the right direction here...

ok, I help a broker with the value checking for refi's and I bring in loans to work on for a split. I was always offered 30-50%, so I figured it would be discouraging. Just trying to get the knowledge and go out on my own. Some good AE's to talk to would be good as well. I'm on the get rich or die trying track in this mortgage business, which seems to be essential now considering I missed the boat by about 5 years.

I have to say I like this job better even if I earn less at first. I never want to write a 50 page report for 1/10th the fee of a originator again. I have to during the transition, but I can't wait to spend my time creating a need for all those appraisals as oppossed to needing them.

KHufford

6434 Posts

Posted - 04/04/2008 : 12:09:12 AM

Ok, so you are basically employeed under a residential mortgage broker company to "send loans to" right?

Do you use their office space and or anything else of value? Or just send loans through there?

If you just send loans and dont really take up much space and/or resources, you should set up your own LLC for commercial payouts. You do not need to split with a residentail company as most states do not require any licensing for commercial brokers. The reason I asked this is because you are workinf for a place but also they dont seem to have the knowledge to help you place and package these commercial deals right?

If I am correct I would reccomend you "partner and paper up" with a good commercial broker. They can help you to get these deals placed and put together properly and earn a split of your deals.

johnhoefer

429 Posts

Posted - 04/04/2008 : 12:28:22 AM

I appreciate the advice. Setting one up an LLC now actually. She has been doing commercial mortgages for quite a while, but she is not as helpful as I would like when it comes to the stated deals I get. This one has promise I think though. Even if they are tougher to place, the client certainly isn't going to a bank, so I say work it.

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