Opinion Before Offer
I am looking at a property that has a triplex and a sf on the property. The triplex has 1 current renter and the other two apartments need a good amount of work including kitchen and bath upgrades. The basement has 3 garages that cannot be used until basement gets redone The building exterior needs to be totally redone from the roof down. The grounds need landscaping and a new driveway.
The SF if currently rented that I hope to eventually live in and add on. The property is going for a little under 1mil.
When I look at the value of the triplex it comes in around 960, however with all the work needed I am down to a little under 766,000, and I have not finished with my figures yet. The value of the SF does not seem to come into the value at all, as it is not on a separate deed.
Am I doing this correctly. This is my first attempt and I am a lot nervous. So thanks beforehand for your advice.
I am attempting to do this with no money down, which I am being told two things, yes it can be done and no it cannot be done because it is 4 units.
[ Edited by sbenjamin on Date 07/17/2006 ]
If the 4 units are all residentual I know there are lenders out there that will do 100% financing. But I know interest rates are alot higher being that I do mortgages for a living. So if you decide to put no money down the property has to be bringing in a good return to offset the higher rates. There are programs out there for 5 % down as well. hope that helps.
norm delaura
Thank you for this information
no problem
Since you are in the mortgage business - if I may ask, when a mortgage broker is looking at a residential with potential income (3 units) how does this figure into the approval of the mortgage
Yes -
Yes , you can purchase the property as a owner occupied property and the rates would be better then they would be as a non-owner.
You can also do a " stated " loan to avoid proving income , and showing leases and worrying about the debt ratio.
[ Edited by commercialking on Date 07/23/2006 ]
Thank all of you very much for taking the time to comment and offer advice.
Below is a response that I received - Does anyone know how to structure this type of contract? "Sounds like you have a very good POTENTIAL deal. If the seller owes a small amount on the property you could be in luck. Yes, with it being four units you can get residential financing. However, with the amount of work that needs to be done you will have to get a rehab aquisition loan or a hard money loan. Have the seller do a seller carry back and get bids for all the repairs and have that amount credited to you from the seller to show on the seller side of the closing statement. If you work this properly, you can get it with no money down, money in your pocket for repairs and about three mortgage payments.".
The way you describe to buy investment properties may work for some people with real-estate lic. but for the rest there are still 100% NOO loans available on investment property if the value is there and the credit qualifies the borrower.
Good Luck,
Robert
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Robert,
Where do you find the 100% commercial loan? I can only find 10% down. Is the interest out there?
Just signed a deal on a five unit brick, great location.
FICO 805
Cost 170,000
GSI 28,800
GOI 26,400
NOI 16,480
CAP 9.694%
GRM 70.83
Can I get a zero down loan on this???
Thanks,
Chris
wow... with an 805 fico they should owe YOU some money down...
I was able to buy a triplex with no money down through Aurora home loans (www.alservices.com)
Maybe they have a commercial program.
will be back.
Now is that @14% with 5-6 points right?
Quote:
On 2006-06-23 10:24, mots32 wrote:
I work with a Nationwide Commercial Lender that lends up to 100%. No Doc Hard Money
Loans in 3 Days or Less
<font size=-1>[ Edited by mots32 on Date 06/23/2006 ]</font>
The first gets paid off (in the conventional loan scenario), leaving a new first position creationand the owner to hold the second.
[quote]
On 2006-05-04 21:48, ypochris wrote:
Robert,
Where do you find the 100% commercial loan? I can only find 10% down. Is the interest out there?
Just signed a deal on a five unit brick, great location.
FICO 805
Cost 170,000
GSI 28,800
GOI 26,400
NOI 16,480
CAP 9.694%
GRM 70.83
Can I get a zero down loan on this???
Thanks,
Chris
Hey Chris,
I was answering the post question about 100% financing on investment property which I took as residential NOO rental property not commercial properties. Commercial deals are as you have stated 90% LTV is a good loan, the lenders want to see something into the deal (money) so there is pain (loss of money) if they decide to walk away.
Robert
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