100 Or 90% Financing On COMMERCIAL DEALS
IS THERE ANY BANKS OR ANY WAYS TO GET 100 OR 90% FINANCING ON COMMERCIAL DEALS?? hOW ABOUT WITH CLOSING COSTS INCLUDED?
ANY BANKS IN NYC AREA?
NELSON NIIJEL
*[ Edited by commercialking on Date 01/10/2005 ]
100% Bank financing is unusual in commercial transactions. On the other hand the banks are not as concerned about where the downpayment comes from and 20 and even 30% holdbacks by sellers are not unusual.
Nelson,
Commercial lenders are in many ways more flexible than residential lenders. One expectation, however, is that the borrower have some 'skin-in-the-game'. In 30 years of real estate investing and financing, I have yet to come across anyone offering 100% financing for a commercial deal (except maybe those who use your family members for collateral).
With regard to the 90% - many lenders will loan 70%-80% on a commercial venture and allow you to obtain secondary financing, usually in the form of a seller carryback, for a Combined Loan to Value (CLTV) of 90%.
i've head that you can do two seperate loans like residential.. is that true?? like an 80/20 split..
I obtained 100% financing on a 29 unit multifamily. I had only two weeks to put the deal together. It was a hard-money loan and not something you want to use every day, but does have its place. It worked so well, that I broker loans for this investor now. I do agree with one of the other posters regarding having experience in RE investing, but it definietly can be done! IF you are interested in hard money, please see my profile for contact info.
[addsig]