Creative Lending
Hello Everyone,
I have a deal that needs creativity big time. it is a manufacturing start up with 2yrs running, Operationally breaking even, with good EBITDA. Needs cash about 3.5MM to refinance multiple loans (e.i SBA, Real Estate, Line of Credit) Real Estate and Operation is valued at 16MM. replacement value. If anybody has any ideas as to how to get a deal like this going I would appreciate it.
The large investment grade tenants you are looking for have teams of people that have been evaluating demographics in all metropolitan areas and evaluating properties for sale or to lease. If they are not where you are its for a reason, the population or the medium income levels in your area do not match up with their investment model for many different areas.
You could still put together a market study to evaluate the area and your property to prove to one of these companies that it would make financial sence to develop or lease from you, but I think this would be a long shot.
Good Luck,
Robert
[addsig]
This is definitely useful information.
Would I need to consult with the Economic Developer in the area or how would I locate the team of people who are doing demographics in the area from certain companies?
This area is gradually developing and bigger projects are being foreseen in the 5 to 10 year economic plans. Major highways, housing developments, and retail developments are being established. I am trying to find the best approach to locate and bring business to this area.
Does anyone has any other suggestions?
Are there any consultants that will contribute to my knowledge in this area? Your information is needed ASAP, so that I can move forward in acquiring the property in order to make a sound decision based on my investment.
My email address is listed in my profile, so if you offer services of such please send me your information to further discuss.
Business partners represent a very close relationship, question is his credit score going to change things that much? was his/her credit score an issue when you purchased the land together? Did you have in mind you and your partner building on the land and after that share the profit of the bulding before the partnership?
Is your partner going to help you pay for the mortgage after it fund?
Credit score alone does not indicate that a person will stop being a partner within itself, however people do change.
No one should advise you on just credit score alone if you should not be parthners anymore. More is involved.
Greetings helena960,
This is really a question only you can answer. Do you still want to be partners with this person?
If so, you could do a loan with you as primary borrower and him as a co-borrower. Or, you could do a loan in your name and add him on title later. Or, you could carry title in a land trust. Etc.
But the real question comes back to whether or not you want to continue the partnership with this person.
Just my 2¢
i would appreciate a little more info on titles in a land trust. thanks
lease with option will accomplish this if you want to make money off your properties with a current mortgage and transfer the repairs and upkeep to the new party.
[addsig]
Is this legal? I have not been investing long myself (just started this year and just recently purchased my 2nd SF) but I always thought that in order to sell a property that the property had to be free and clear. Otherwise, the bank would call the full mortgage due.
am in wrong in this understanding?
Thanks for your reply.
Otherwise, the bank would call the full mortgage due.
The wording should be "CAN".
The bank CAN call the mortgage due. Wheather or not they would want to is another story. If the market is tight, they will probably let it go IF they are getting paid on time.
Mike
Sounds like a "wrap around mortgage" or all-inclusive trust deed. Not sure about turning all the rents over...that sounds a bit strange. But yes and seller can offer owner financing as a wrap-around mortgage aka all-inclusive trust deed.
Could also be a Contract for Deed.