Has anyone used an equity or mezzanine lender to finance part of a deal? We are looking at a 5 mil deal and wanted to bridge our equity gap to bring it close to a 90% ltv deal.
as if he has a drop dead number. A retired guy is selling this building unpriced. After building a raport with hime, I asked if he had a drop dead number.
7% is low for Chicago. remember, the current sale price and the current ROI equals 7%, but what makes you think that you can do the same? Todays commercial rates might be much more than what he is currently paying, so you need to get a LOI from a lender. This way you have a real rate to use to calculate actual ROI. My feeling is that it wont be 7%
productive. did you end up buying that property? i saw that you are from chicago. was wondering if we could chat abt whats going on in chicago. pm me. thanks
as if he has a drop dead number. A retired guy is selling this building unpriced. After building a raport with hime, I asked if he had a drop dead number.
2.6M while I was willing to pay 3M.
All you can do is ask.
Will an installment sale help his tax situation?
I am taking both of your advice. I believe the 7% cap rate is typical in Chicago.
Does anyone know how I would find out what is typical for a cap rate? Would I ask a realtor, a mortgage broker, or is there a more impartial source?
You should really have a Realtor working for you. Ask a Realtor and a mortgage broker.
7% is low for Chicago. remember, the current sale price and the current ROI equals 7%, but what makes you think that you can do the same? Todays commercial rates might be much more than what he is currently paying, so you need to get a LOI from a lender. This way you have a real rate to use to calculate actual ROI. My feeling is that it wont be 7%
productive. did you end up buying that property? i saw that you are from chicago. was wondering if we could chat abt whats going on in chicago. pm me. thanks