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Updated about 5 years ago on . Most recent reply

User Stats

93
Posts
24
Votes
Daniel Lioz
  • Houston, TX
24
Votes |
93
Posts

Commercial loan evaluation question as LTV calculation

Daniel Lioz
  • Houston, TX
Posted

A newbie question about when purchasing a self storage with a warehouse or warehouse with extra land....if during purchase of an existing property with specific rents, I bring a signed contract for lease by another large tenant that will start a lease after the purchase, can that signed lease be used to get higher evaluation on the property thus higher LTV, either on original purchase or may be a double closing refi type....thus creating a 0 out of pocket cost? For example: buying a self storage which is valued 300k based on current rents, but it has large land area for which I already have a person ready to lease to build a large specialty warehouse for a specific price, thus with this lease consideration would make the value of the property worth 500k.

Thank you!

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