Commercial Property Question
I am looking at a piece of commercial property that the owner needs to sell. He owes $619k. The property I believe will appraise for close to 1 million. I believe he will let it go for what he owes but he needs 80 cash at closing. If I don't have any big amount of cash to put down will a bank loan 100% on a commercial loan if its well below FMV? Or any other ideas you may have for me to think over.
You will have to find a bank or mortgage broker who will fund the purchase. If it appraises for what you feel it will you will have a loan for approximately 70% LTV. A more important consideration will be does the property produce enough income to pay all expenses (maintenance,taxes,insurance,and payment).
Yes the property right now will carry the expenses. And it will only grow.
Also this is a business that I am familar with and the bank knows this. Will that help at all them knowing that I know what to do?