All Forum Posts by: Lon Jansen

Could you please explain this in depth?

Peter,

I sincerely appreciate your informative post. I do not have a solid relationship with any lenders, I may have to meet with local bankers.. what is the best way to meet the right people at the banks and get them to take this seriously, considering my 5% limitation?

The property has a DSCR above 1.25. If I could get at least 80% from the lender, I could do two things:

1) ask the seller to carry 15% and put down 5%
2) ask the seller to carry 20% as a 30 year amortized/7 year term balloon note at a higher interest rate (7%). Would be a win-win for us, I would think. But from what I understand, most banks would disallow this.

I do have equity in my other property (building value of $290,000... my equity is $50,000) however, I would never want to leverage it. The reason being, is because my wife's group practice is the "tenant". We can't ever risk losing that property in a worst case scenario.

Would love for others to chime in!

I've found an excellent property, which I believe will turn out to be a good deal if I can acquire it.

It is an apartment complex (40 units) listed at 1.6 million. The seller may consider owner financing a portion of the loan... possibly over 10 years but no more because he wants to get OUT (he is in his 70s).

My credit score is 760. I have another property, commercial building being rented to doctors, with a mortgage on it. No other debt.

I cant put down more than 5% of the entire deal. How can I secure financing from a lender? Where should I start?