$3M Equity Leverage

[Yuhanna Sherriff]

If you have $3 million in equity on two properties and your trying to acquire another property, how do you best position yourself?

Our funds are tied up and will be available for full purchase in about a year and half. They are primarily in CD's and stocks that are pledged to the loan.

The properties are hospitality properties but we are trying to diversify to either apartments or self-storage.

The bank appraised aggregate value is $9 million less $6 million in debt.

Any help is appreciated. Also, where can I start looking for good acquisitions for the apartment or self storage opportunities. I know about hospitality but not too much about those.

Yuhanna
Garrison Capital Group
[EMAIL REMOVED]

[Jon Holdman]

Not entirely sure I understand your situation. Are you saying that the value of the CDs, stocks and the property total up to about $9 million, and you have $6 million in loans with the CDs, stocks, and property as the collateral?

So, you're at a 66% LTV. Unfortunately in todays lending environment, there's not much there to leverage. 75% LTV is about as high as anyone will go on investment property, and that's for Fannie Mae type loans on conforming properties. 70% is about the max when you get into commercial loans.

Have you spoken with any local banks in the areas where you want to invest? What has been their feedback? If not, I'd suggest starting there.