Financing Industrial Property Purchase

[Eric Thomson]

I have been managing a set of industrial properties for a family member for several years and they are now wishing to sell the property. I am trying to put together financing so that I can purchase this property for myself and replace my income, but I need to be able to do so at 10% down. The property is 100% occupied and at 10% down would still have positive cashflow depending on terms and requirements from the lender (and of course if the payments would be too high - high interest, short payment schedule, etc - then I wouldn't consider buying it).

I thought I would be able to find more on these forums but I cannot. Maybe there is not much difference between industrial and commercial financing. Is it possible to find a lender that will take on a 90% LTV or an 80/10? Seller financing MAY be an option but it may get a little tricky with family. I would definitely like to explore other financing options first.

How are the terms typically on these types of loans? Is it a 20-25 yr schedule with a 5 year term? How do interest rates compare to financing sfh's?

[Eric Thomson]

These responses are in direct conflict with what the gurus say... You guys would never be able to sell any books. :)

Well, I will have to reconsider my plan. Seller financing may work out. I may be able to come up with another 10% but it will delay the purchase. I don't want to take on a partner because doing this on my own would give me the quit my job income I'm looking for.

Thanks for your help guys, I'll let you know how it goes.