All Forum Posts by: Alex Scaffold

wow yeah - you guys are spot on with what ive discovered and filling in the some useful details.  Much appreciate.   @Scott D Burrows you must have walked this road before - lol - i will reach out to Jonathan next week on your suggestion - thank you , have a good wknd and all the best in your endeavors gentlemen.

Hey all,
is there a customary age a company must be to get a loan? What are customary guidlines for guarantor ? under what conditions is a guarantor not needed?

thanks - im getting that alot with it......will report back but it got sidelined by a multifamily deal that popped up.

So we bought land in marcellus shale decades ago....8yrs ago we got a lease agreement for a well for 5yrs - $GOOD DAY$....8yrs pass, shale is out of vogue in america for environmental and oil business/economic reasons.  Clearing was done, road built for well production, before pipes laid company ran out of $$ when oil price tumbled and shale production slowed in U.S.  Three years since lease expiration have passed, we would love to finance more realestate deals if we could sell the land for an approriate value........anyone in oil/gas biz?? - YEAH huge issue despite clearly there being minerals (our agreement was with a major natural resource company so this was not speculation per se).  Noticed a few oil field posts so figured i would see if any "oil men" or women visit here and would be good enough to share some insight on this unusual realestate question.  Any resources or links to land owner groups or investment groups who actually buy well land pre-drilling totally appreciated.  thanx for reading , have a good day.

Hello,

tl;dr: LLC owns a 2 unit rental property No debt. Banks dont deal with ppl without credit - Want to add someone with credit to company to pull loan for 37% of the low end, estimated value of property.

Full question:
Everyone in real estate has heard of using your credit (personal and equity) to finance deals. Everyone has heard of partnerships using one persons strong credit to finance deals. Why does noone talk about using pure equity, no personal credit, to finance deals? ("Pure equity" business opportunity for creative hard money lenders ?? or some creative risk issue designed to prevent pure equity lending?). Anyway, we want to bring in someone with an extensive (20yrs +) and satisfactory (say 550-600) credit history. Make them a partner and have them pull an equity loan for $110k on the rental property valued at $300-350k, no debt. Repayment horizon is 3-4 years.

-Who deals with this type of pure equity lending? banks & quicken type lenders?!?

-How must new partnership be formed to allow new partner to successfully pull such a loan from a vanilla lending insitution, without being burdened by existing partner (from lender perspective)?

-What customary rules/regulations/road blocks will we likely have to address that will prevent this setup?

-What type of rates could we expect?

Fun part: anyone reccomend or IS a real eastate centric lawyer/accountant operating in NJ/PA region (nyc a bonus) who is familiar, interested, reasonable, and deals with this sort of partnership, financing, equity business consulting?