Has Anyone Done A 80-10-10 Dael Before?
Hi,
I was told that ther ways of curcumbending the 20% down rule for commercial properties by using the 80-10-10 loan. Can anyone advise me on this. Thank you in advance.
Respectfully,
James
P.S. Sorry about requesting for a broker on the forum. 
Yes James, there are lenders who will allow you to only bring 10% cash to the deal, as well as allowing the seller to carry a second lien back past closing in the form of subordinate financing.
A lot depends on your past commercial operating/real estate experience, your credit profile, the NOI of the property in question, and many other factors.
Hope this helps, Dave
[ Edited by NancyChadwick on Date 04/04/2005 ]
thats usually the best way to go.
Once you get to commercial lending net worth counts for more than FICO. Not that FICO is meaningless.
That said, whats the cap rate and DCR on this deal? How did you arive at market value?
Quote:
On 2005-04-06 21:14, commercialking wrote:
Once you get to commercial lending net worth counts for more than FICO.
The banks appear to treat net worth in an odd way, though. They seem to want you to have a net worth exceeding the loan balance, excluding the property you are about to acquire. That must not actually be enforced, or almost nobody would ever qualify unless they were already well-heeled investors (catch-22). If I buy a $1 million property, my net worth went up $1 million. Lending $750k against it seems like sound business practice, even if my net worth before the loan was far less than $750k. Excluding the new building in a calculation of my net worth for purposes of underwriting this loan therefore seems terribly irrational.
Try Eastern Savings Bank. They may be able to help you out.
Commercialking,
DCR is 1.98 and the cap rate is 11% which is good for the area. I arrived at market value by also looking at comparables of recent sales.
Was their a unity of title?
interesting, but never heard of this.
The actual language that seems to apply here is this:
Vacant land.
The sale of vacant land is not a sale of your main home unless:
The vacant land is adjacent to land containing your home,
You owned and used the vacant land as part of your main home,
The sale of your home satisfies the requirements for exclusion and occurs within 2 years before or 2 years after the date of the sale of the vacant land, and
The other requirements for excluding gain from the sale of the vacant land have been satisfied.
If these requirements are met, the sale of the home and the sale of the vacant land are treated as one sale and only one maximum exclusion can be applied to any gain. See Excluding the Gain, later.
I guess the question to me would be if it was a vacent lot next to your main home, how was it used as PART OF your main home.
Nice catch, never saw this b4.
In this particular case, our home had an awesome view of the nearby ocean, and it was right across the lot. We bought the lot to preserve our view, and we kept it mowed and landscaped so it looked like it was part of the lot our home was on.
sounds like a mortgage banker or some kinda private money lender.
Have you checked online source for commercial rates and terms?
Are you going to operate the retail shop or lease it? If self run, youe might consider the SBA.
IMy construction company will occp 25%, the rest is for rent. I have check, but the rates are higher at 10%
SBA is such a hassle. and slow. I need to close this within 30 days
is there a specifc site that I can check for stated income loans?
Is there a place I can check business dealings for brokers and past problems?
Hey, thanks for your reply. what else?
BTW, the lender/broker stated not to shop rates because this could effect my credit, thus would have to charge higher interest rate.
i knew that inquires can take points away, but very little. do you know anything about that?