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aduncan
86 Posts |
 Posted - 10/11/2008 : 4:55:45 PM
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| 2year old business need to buy the building from original owner. Will do hard money Virginia property. Looking for lowest LTV? |
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dwallace
590 Posts |
Posted - 10/11/2008 : 6:52:52 PM
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If he can go full doc he can get much better terms and LTV. I'm assuming you are looking for the lowest down payment versus LTV so with that assumption we can do 90% on an owner-occupied commercial loan.
Let me know if we can help. |
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aduncan
86 Posts |
Posted - 10/11/2008 : 6:59:25 PM
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| He has not owned it for two full years yet. I think is going to cause a problem on full doc |
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dwallace
590 Posts |
Posted - 10/11/2008 : 7:12:47 PM
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There is not a problem with him only owning the business for less than two years. We do start ups full doc and the only difference generally is the LTV is 5% lower. If he owns his business less than two years then we drop to 85% LTV but full doc would still be a much better way if he has been doing well since he owned the business.
I would strongly recommend letting us look at this full doc first and then if we can't get it done then you can always take it hard money. We don't charge application fees and I could get you a fairly concrete answer is a day or two. There is no downside in having us look. |
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EMScommercial
5138 Posts |
Posted - 10/11/2008 : 8:54:36 PM
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Here are some basic questions just to figure out what can or can not be done....
Property type?
Property location?
Purchase or refinance?
Loan amount request?
Property value? (recent MAI appraisal?)
What is the DSCR on the property?
Borrower's info: Credit report, tax returns, income docs, resume?
While many will claim to be 'lenders' but are truly brokers, we tell you up front that we are commercial brokers and darn good at it. We have been doing nothing but commercial financing for five + years and have a strong amount of experience in the field - conventional and sba.
We invite you to be like more than 300 other mortgage professionals, attorneys, title agents, etc. and become one our 'business partners'.
Please let us know if we can help you with your commercial scenario(s) - I'm sure that if there is any financing options for your clients out there, we can find it in our vast internal database of commercial lending sources of which we are direct brokers for (currently stands at 350+ entries as of today (lenders, banks, private money, hedge funds, pension funds, insurance companies, etc.)).
Eclipse Mortgage Services is the proverbial 'head of the snake'... the end of that broker chain.... next step - the lending source.....
** We issue a mutual NCND to protect both sides!! **
Remember... We only get paid when the thing funds!
Hyperlink to our page for submissions - very straight forward and simple - http://www.EclipseMortgageServices.com/body_contactme.php - we will receive your submission and an account managers will be assigned. Within one business day you will be contacted - starting the process!
Thank you... |
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PinnaclePeters
1101 Posts |
Posted - 10/13/2008 : 08:47:32 AM
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| What is the business? |
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joe313
648 Posts |
Posted - 10/13/2008 : 09:06:19 AM
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| If you are going hard money, this sounds like something I'd be interested to lend on. Give me a call. |
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aduncan
86 Posts |
Posted - 10/17/2008 : 04:45:37 AM
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| It is a up scale auto repair shop. I should have all docs and details this weekend |
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sandkicker
26 Posts |
Posted - 10/17/2008 : 09:55:03 AM
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Re: "What is the DSCR on the property?"
If you can find out how to get this information without knowing the:
Loan Amount
Interest Rate of the loan you will get
Amortization term of the loan
Gross Annual income of property
Tax, Insurance, Utility and maintenance expense on the proerty
Lender's policy on vacancy factor
Let me know :-)
Asking for the DSCR from the prospective buyer or seller would be a real credibility killer.
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brad.easter
695 Posts |
Posted - 10/17/2008 : 10:04:32 AM
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quote:
Originally posted by sandkicker
Re: "What is the DSCR on the property?"
If you can find out how to get this information without knowing the:
Loan Amount
Interest Rate of the loan you will get
Amortization term of the loan
Gross Annual income of property
Tax, Insurance, Utility and maintenance expense on the proerty
Lender's policy on vacancy factor
Let me know :-)
Asking for the DSCR from the prospective buyer or seller would be a real credibility killer.
Wow, seven posts and he's already kickin' sand.
My guess is this guy didn't make it throught the Dale Carnegie Course!
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mcmoney
309 Posts |
Posted - 10/17/2008 : 10:46:49 AM
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quote:
Originally posted by sandkicker
Re: "What is the DSCR on the property?"
If you can find out how to get this information without knowing the:
Loan Amount
Interest Rate of the loan you will get
Amortization term of the loan
Gross Annual income of property
Tax, Insurance, Utility and maintenance expense on the proerty
Lender's policy on vacancy factor
Let me know :-)
Asking for the DSCR from the prospective buyer or seller would be a real credibility killer.
Dude's gonna drop nearly 4 large without knowing the components to calculate a ballpark DSCR? If you can't get a ballpark DSCR together based upon reasonable assumptions to rate, amort term, and insurance while using actual income and expenses from the operating statement or property tax returns, the borrower wouldn't even have an idea of his ROI. A buyer not interested in that is a credibility issue. Not getting the information, and not having parties to the transaction getting that information, is a credibility killer.
Or you can forget about all that and just go hard money. Take 65% LTV off the firesale value. Add 4-8 points upfront, a 12-15% rate and 1-3 year maturity and you're good to go. |
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sandkicker
26 Posts |
Posted - 10/17/2008 : 12:02:07 PM
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Given, the wide range in the market place for rates and terms to say nothing of the fact that many lenders in the wholesale arena have "their own adjustments" that they make to the NOI calculation, and the fact that this property is "automotive related" and anathma to many wholesale lenders, if you are going to make
"reasonable assumptions to rate, amort term, and insurance"
you may as well save yourself some work and just assume the DSCR.
If "aduncan" knew enough to do that he never would have made the post in the first place.
BTW... the buyer is apparently trying to buy the building his business is in.
My experience is that O/O borrowers are not all that savvy about the commercial lending world and just want to run their own business. ROI is rarely an issue, preservation of business continuity and control are. R/E Investors on the other hand are a different story and have often already run (and verified) the CAP RATE for the property before you ever talk to them.
Re: The "Dale Carnegie Course"... my wife handed me a copy of it some years ago. It's somewhere at the bottom of the pile of fishing mags I haven't had time to read either :-)
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brad.easter
695 Posts |
Posted - 10/17/2008 : 12:18:38 PM
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quote:
Originally posted by sandkicker
Given, the wide range in the market place for rates and terms to say nothing of the fact that many lenders in the wholesale arena have "their own adjustments" that they make to the NOI calculation, and the fact that this property is "automotive related" and anathma to many wholesale lenders, if you are going to make
"reasonable assumptions to rate, amort term, and insurance"
you may as well save yourself some work and just assume the DSCR.
If "aduncan" knew enough to do that he never would have made the post in the first place.
BTW... the buyer is apparently trying to buy the building his business is in.
My experience is that O/O borrowers are not all that savvy about the commercial lending world and just want to run their own business. ROI is rarely an issue, preservation of business continuity and control are. R/E Investors on the other hand are a different story and have often already run (and verified) the CAP RATE for the property before you ever talk to them.
Re: The "Dale Carnegie Course"... my wife handed me a copy of it some years ago. It's somewhere at the bottom of the pile of fishing mags I haven't had time to read either :-)
Obviously! |
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DougDaft
222 Posts |
Posted - 10/20/2008 : 07:43:58 AM
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| This deal sounds like something I would like to take a look at. Email me at ddaft@cbigroupllc.com if you are still looking for a funding source. |
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