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djimloans
209 Posts |
 Posted - 07/02/2009 : 11:10:29 AM
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| Need some help I have a $10M commercial deal in NJ. Property is 320 residential units and 17,000 sq. ft commercial space, netting after taxes, insurance, maintenance appr., $1,085,000 yr. Have LLC that wants to buy it, also seller will hold back 10% 2nd. All units are rented section 8, so steady income and building has room for expansion. Borrower is waiting on me to make his offer. |
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mcmoney
712 Posts |
Posted - 07/02/2009 : 11:54:45 AM
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Might want to talk about:
1)What kinds of business are going into the commercial space?
2)What percentage of the residential units are leased? (All?)
3)The $1.1MM net figure: Does that include management and vacancy factors?
4)How much is he putting into the deal?
5)Does anyone else own the LLC? If so, who and what percentage?
6)How does his credit look? |
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djimloans
209 Posts |
Posted - 07/02/2009 : 12:46:12 PM
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| $1.1M is after all expenses and vacancy factor, all units are currently leased. Getting the info on the commercial space. LLC under one person, 665 FICO |
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findingfunding
217 Posts |
Posted - 07/02/2009 : 2:04:36 PM
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| Given just the basic information here this certainly seems like a workable deal. If you would like to get in touch I'd be happy to go over the scenario. |
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stuartg
227 Posts |
Posted - 07/02/2009 : 3:39:13 PM
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The parameters of this deal seem viable.
Please send a summary, use of funds, and financials on property/business and borrower and I should be able to give you a prompt answer.
Very Best,
Stuart G Lewis
Managing Director
Brinkabar, Inc.
9595 Wilshire Blvd., Suite 900
Beverly Hills, CA 90212
310-300-8463 Tel
310-496-0588 Fax
slewis@brinkabar.com
www.brinkabar.com
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jskolnick
290 Posts |
Posted - 07/02/2009 : 3:41:03 PM
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Danny
Please feel free to contact me at any time to discuss your loan scenario.
We are commercial mortgage brokers.
We can arrange any type of asset based lending. From lines of credit to accounts receivable, purchase order, equipment financing to real estate. We maintain relationships with a variety of different banks. This gives us the ability to offer the best terms for loans from $500,000.00 and up. Loans can be submitted through our web site, www.greenmountainfs.com, via e-mail to greenmountainfs@gmail.com or call us at 516-596-1456.
Jerry Skolnick
Green Mountain Financial Services, Ltd.
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sbaclc
66 Posts |
Posted - 07/02/2009 : 5:35:54 PM
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Looks possible, contact me to discuss further. Best case scenario we are looking at 5.4% 30 yr am, 5 yr fixed balloon.
Mixed Use: No more than 20% of income and square footage allowed from commercial component |
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djimloans
209 Posts |
Posted - 07/02/2009 : 7:30:11 PM
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| This may be a stupid question but haven't done a commercial deal in a while, is stated income still possible? Borrower is a business owner doesn't show much income |
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champakstmtn
19 Posts |
Posted - 07/04/2009 : 8:34:57 PM
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Yes It is possible. Do not need personal
tax returns as long as there is enough cash flow
to make debt service ratio....he may ask seller to
take back a second mortgage ...make it work..
I am a Commercial Mortgage Broker in Atlanta, Georgia.
Champak C Shah
RIPA Financial Services, Inc
P. O. Box 870168
Stone Mountain, Georgia 30087
404 488 6137
champakstmtn@bellsouth.net
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gthomas
74 Posts |
Posted - 07/04/2009 : 9:40:47 PM
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| Borrower does not necessarily have to show good income from his current business but he must have good skin in the game, at least 5 years of management history in successfully managing properties of this size, excellent credit history and the property should be in a good location preferably in or near a major metropolitan area. |
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champakstmtn
19 Posts |
Posted - 07/05/2009 : 08:37:46 AM
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It is critical to have Good Income
revenues..and good occupancy ..even profroma
based..because lender and appraisor will look
income and expenses --to determine NOI and DCR
to determine value as well as loan amount ,,
Good credit is good ..but some times not necessary
in this size laon..many laons are Non - Recourse ..
made out to Corporation ( LLC ) .. if no experiecne ..
can show management company ... and still make profit..
Champak Shah |
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frank drigotas j
3845 Posts |
Posted - 07/05/2009 : 2:03:58 PM
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I always wonder, in these situations, how many of those responding are TRULY direct lenders, not brokers in the daisy chain.
You know, like the ones advising on "laons"* from Stone Mtn "GE."
Real Name: CHAMPAK SHAH
Location: STONE MOUNTAIN, Ge
Born/joined BO yesterday, 7/4/09
But, champs responses in nine threads below lead me to think he can do anything.
dollar
*"but some times not necessary
in this size laon..many laons are Non - Recourse .." |
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davidfr
2225 Posts |
Posted - 07/05/2009 : 4:02:06 PM
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quote:
Originally posted by frank drigotas jr
I always wonder, in these situations, how many of those responding are TRULY direct lenders, not brokers in the daisy chain.
You know, like the ones advising on "laons"* from Stone Mtn "GE."
Real Name: CHAMPAK SHAH
Location: STONE MOUNTAIN, Ge
Born/joined BO yesterday, 7/4/09
But, champs responses in nine threads below lead me to think he can do anything.
dollar
*"but some times not necessary
in this size laon..many laons are Non - Recourse .."
"Champs" also made a great post in the lender review section where he espoused why you should pay him a DD fee, but not a lender:
--------------------------------------------------------------------------------
Originally posted by champakstmtn
I never heard of them.
Yes there are many who pretend to be lenders.
I had one in New York... I had some doubts and I told
my client not to pay $20,000 ..for third party reports..
he lost money..the Broker ( lender) is now in Jail.
I am a Commercial Mortgage Broker.. I do charge fee ( deposit)
of $3,000 ..to prepare a loan package -- after I review initial
data to see if the numbers work. Then I send to four or five
lenders same time..so its easy to get good terms and if one later
rejects --other lender is ready. Do not pay any fees until have a
Commitment Letter --with terms and rates.
Champak C Shah
RIPA Financial Services, Inc
P.O. Box 870168
Stone Mountain, Georgia 30087
USA
champakstmtn@bellsouth.net
404 488 6137
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frank drigotas j
3845 Posts |
Posted - 07/05/2009 : 6:28:07 PM
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I saw that in the other section.
dollar |
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champakstmtn
19 Posts |
Posted - 07/05/2009 : 8:03:05 PM
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Sorry fellows / friends... Yes I do charge a
fee like a retainer fee ( most attorney charge),
it is a refundable if Loan is not obtained.
and credited toward loan fee --at closing.
In the past I used to do free.. drive six hours
away from my home, take pictures, drive around
city to check for other properties ( hotels),
talk to county people etc..to get data I need
to prepare a loan package. It is lot different then
residential mortgage. I had to go three or four times.
One in South Carolina, client went to three brokers and
could not get the loan. Finally he was referred to me by
some one and I close the deal --$2.0 million
loan on a hotel. Buyer had no experience.
I have a separate Deposit Fee Agreement ...that says
that the deposit fee ( $3000 ) will be credited towards
my FEE for obtaining loan. My fee is $10,000 minimum
or 1 % of loan amount.
With respect to other fees... so called Third Party
Reports fees--- I did not say do not pay --DO NOT pay
up front...Pay only after the Approval Letter with terms
and rate... Review the Agreement and if aggree than pay ...
to proceed further. Some times they also call it a Commitment
fee. and it is actual expense -- for appraisal, engineering
report, survey, environmental report etc.
There also I had one lender from Chicago, backed out on a
$2.0 million loan ..two weeks before closing -- had some
problems with hedge fund --parent company -- and my client
had paid $15,000 for third party reports --which were done.
I had to hire an attoreny to write a letter to get my client's
$15,000 back - - which he did. It was not our mistake. So we
force lender to pay back my client. It cost $1500 for attorney.
I did not make any money on that deal..I worked for two months
-- five hours away from home and had to make four trips and stayed
there for three nights on one trip.
Thta's why now I charge Deposit Fee. If they change mind, I keep that
fee. Or Selller changes mind and does not sell proeprty, there is
no loan required. I keep deposit.
I had taken 40 hour classes to get license for Residential Mortgage
but then decided not to do .. not enough money. I am laid back
easy going person..I can make three or four loans a year and be happy.
I do gas stations and hotels and now expanidng to apartments, assisted living
and shopping center.
Yes there may be some typo errors in previous messages. I am from
Stone Mountain, Georgia ( suburb of ATLANTA).
I hope this will clarify any misunderstanding, and help every one --
specially thos who is thinking about getting into a Commercial Mortgage.
Champak C Shah
RIPA Financial Servcies, Inc
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champakstmtn
19 Posts |
Posted - 07/05/2009 : 8:06:40 PM
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I do have few lenders..national who does
apartment loans. Please contact me via email..
champakstmtn@bellsouth.net
Thanks
Champak C Shah
RIPA Financial Servcies, Inc
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frank drigotas j
3845 Posts |
Posted - 07/05/2009 : 8:21:28 PM
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Nothing but the best to you, champ, nothing but the best.
dollar |
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Daniele
161 Posts |
Posted - 07/06/2009 : 11:06:45 AM
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I am curious where in NJ the property is located. It seems like he is buying the property at a reasonable price. The score of 665 is going to hurt. What is his post closing liquidity going to look Like. I think I could maybe get you a 65% LTV loan that will allow up to 75% cltv at a good rate. With that credit score he will need to put 2.5 Mil down and have liquid funds after purchasing to go conventional. I Give me a call to discuss
Daniel Eckhouse
8453236258 |
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geom009
28 Posts |
Posted - 07/09/2009 : 7:52:48 PM
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quote:
Originally posted by djimloans
Need some help I have a $10M commercial deal in NJ. Property is 320 residential units and 17,000 sq. ft commercial space, netting after taxes, insurance, maintenance appr., $1,085,000 yr. Have LLC that wants to buy it, also seller will hold back 10% 2nd. All units are rented section 8, so steady income and building has room for expansion. Borrower is waiting on me to make his offer.
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geom009
28 Posts |
Posted - 07/09/2009 : 7:55:36 PM
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quote:
Originally posted by djimloans
Need some help I have a $10M commercial deal in NJ. Property is 320 residential units and 17,000 sq. ft commercial space, netting after taxes, insurance, maintenance appr., $1,085,000 yr. Have LLC that wants to buy it, also seller will hold back 10% 2nd. All units are rented section 8, so steady income and building has room for expansion. Borrower is waiting on me to make his offer.
Hello, Have you found any lenders yet I know of one that will do your loan, but I need more info,, George Mckinney 727 388-4461
tfs_processing@yahoo.com |
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ML
4905 Posts |
Posted - 07/09/2009 : 9:02:31 PM
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If you're still looking, I have some sources. Rates as low as 1% for NYC Aff. Housing!
NJ, your looking at DSCR of 1.25-1.30% 80% max LTV and rates of Libor plus 380 or an interest rate floor of 6%. Credit should be excellent, and experience in this field is mandatory!
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