All Forum Posts by: Paul Kestenbaum

If you are looking to add in Demographic information, which would help your Potential investors to look seriously at your Project, you may want to go to: www.loopnet.com or www.zillow.com & look at the numbers for the area.
They are especially going to also want to see where & how you will be filling-up the Property, to get the maximum occupancy, with reasonable rents, & thereby generating Positive cash flow...then, maybe after 6 months to a year, you will then have a Stabilized Property, & it should also have at least a 90%+ occupancy level, & you can do a Refinance to pull-out some cash, or put-up for sale & at least leave a decent CAP Rate for the Investor/Purchaser.

One of the first things you will need to do is to go to your County's Zoning/Planning Office, to see if they will even allow a "Commercial Zoning" for that Property, if it were to be converted.
Then, you also need to check & see if it will meet their guidelines for "Land Use" & "Density", for that area.
You may have to get a n Attorney to represent you in the process, or in some areas, it may be as simple as getting the Surveyor to come-out & re-survey the Property as a Commercial Property, along with the application to your Property Appraisers Office, to convert it to being zoned as Commercial.

If you can buy at a 10% CAP Rate, that is excellent...but, you will have to figure-out how much you will have to invest, to reposition/renovate the Property to be in satisfactory condition. Then, re-do your calculations. In general, Lenders will allow you up to a 75%-80-% LTV for a a Refinance, but, normally they like to see a 90% Occupancy Rate....at least a 1.2+ DSCR.....& most would like to see at least a 6 months to one year "Stabilization" of the New Positive Cash-flowing income.

Thanks....This is a Great tool for us to use, in our analysis.

[SOLICITATION REMOVED] 10 Year Fixed Rate @ 6.06%, & with at least a 25 Year Amort.

If they will not show you their Financials...RUN away.
Any lender is going to normally require a minimum of 2-3 years of the Current owners Tax Returns. Their Financials are probably down, so, you have to really analyze the underlying numbers, to know what you are potentially buying.