All Forum Posts by: Adam Bartling

@Al M. I sort of do this for a living.  Appreciate the support hope it helps you!

@Al Springfield man that is a huge question.  There are opportunities all over, you just have to talk and listen.  I will say this, it is typically easier to get a loan for investment properties in your major cities 50,000 + metro areas, which also typically properties sell faster.

Otherwise, welcome, search, read and crush it!

@Simcha Davidman Easy answer is No.  You are Not getting 6% on a commercial loan for that amount.  What is your next question?  

If your project can not support a 7%-9% drop the project.  My first company purchase I paid a higher interest rate, you know what I did?  I paid it off early.

Just giving it to your straight, no BS here.  I would put ink to the paper on what you got now. 

cool!

@Simcha Davidman   I am going to trying and bring you back to what matters.  What is most important, is "Who CAN Fund Your Deal".

Every lender has their own underwriting criteria, not all lenders do all loans nor all asset types.

I can look into it if you like or you can tell me "kick rocks"

Here are the basics that you must cover:  

Executive Summary

This should be a complete, extensive overview of the project that includes:

Description of Property:

Address, project name, estimated value, number of units, occupancy, etc.

Legal Owner:

Entity and individuals which own the property or to be created.

Loan Amount & Use of Funds:

Debt owed, other liens on the property, uses of cash.

Date of Purchase & Price:

How much cash does the borrower have invested?

Debt Service:

Current debt on property (including terms and if current), current NOI, 3-yr pro forma NOI and

any stabilization notes or key events.

Sources & Uses:

Explain how and where the funds will be used, including source of your investment funds and

funds already invested in the project.

The Story:

Give us a clear picture of what is going on. What is the situation, and why should we finance the project?

Color Photos:

Provide pictures of the current condition of the property to give us a better idea of the nature of

the project that we are financing.

Sponsor Resume and Bios

We need to know about each and every Principal in the transaction. We want to know about their background, level of experience, position and connection relative to this project.

@Greg Schreffler all are reputable companies, I have brokered 2 of them.  I can tell you 1 of them is no longer doing construction loan in FL.  And for my client I had to bring them other options.   When dealing with a reputable lender they are all going to work for you.  As a broker, I try to stay away from the east and west coast lenders as they are higher, but when others do no like your asset, location, or they are overleveraged or run out of money they just deny you and you have to look for another who want to lend on your project.  So at the end of the day fees only vary about 10-15% ( so say  $5K in fees per this loan) I go with the lender who funds the deal and obviously present the best solution in a multiple bid option or if there are 2 strategies, let the client decide.

Just as the Government raises taxes and fees on businesses, guess what, we all pass it to the consumer.  Thanks government for being the driving force behind inflation!

Even if you have multi member LLC and even when you buy big $ commercial properties, your personal credit and guarantee are attached. Now if you have a business that has considerable amounts of cash flow and healthy bank account, the business can purchase the property. Most as a REI do not meet this, and the other part is that the lenders want to know you got some personal interest in success. They want interest not your property.

@Bobby Nilsen there are a lot of Pros and Sponsors here that are easy to find.

@William Philipp so every client has a unique risk tolerance and different income needs.  The basics that I can tell you, is make sure it is a good deal.  This is why many are into pre-foreclosures, when you can get a property 30-50% value you are going to win all day. 

You have to evaluate: 

Your current employment income vs bills  and longevity / foreseen relevance.   What is it's volatility?

Reserve $, rainy day fund

Your investment $

Cash flow vs. sale  TVM and importance to you

Family goals

What other questions do you have?