All Forum Posts by: Chris Cambridge

Overall there is good outlook. Manhattan has surprised me with lower foot traffic than usual. To me that means office has not recovered so the daily lunch goers are low and Manhattan retail will recover slowly. I'll say this I can't foresee a drop in retail for the other boroughs as they serve the community well. I'm helping someone with a MF refi in Brooklyn and the asset is stable. Other have said the same. There is momentum in general so values would hold on commercial. That moratorium issue issue is a residential play. We'd have to see to outcome.

What's the real details?

What's the purchase price?

What's the loan amount?

What's the location?

How much down payment?

Appraisal done? If so what's the value?

Owner occupied or investment?

You should have 9 mths reserve not 6. The down payment of 30% is adequate but what is the DSCR?
Minimum values should be $150K per property

Deal sounds exciting! I hope they are raking in the dough in that location. Income demographics are weak but if they cornered the market and is the best game in town then that may be a reason for look deeper. The $1M spend by the tenant may indicate plans to stay or cash out on RE to balance books. If the previous owner kept the building ask him to renew the lease for 15 years.

Short answer it applies. Your loan structure varies according to your goals. If acquiring stabilized as opposed to value add and rental experience.

The first thing to address is the potential to qualify. Experience for that many a must, liquidity (have 35% to put into deal). If the project is not entitled and shovel ready you are looking at pre-development bridge money. Expect that they will be taken out with construction loan funds unless you are using your own cash for acquisition. Consider that as the exit must make sense numbers wise.

You'll be looking into an interest only loan not 30 year.

Honesty is the best policy. Your exact word are (only if they ask now Adam) "We slowed down but were able to re-engage clientele and resume long standing relationships. By the way how soon can we close?"

At $800K you have 25% down. You need to show 6-12 months reserves on hand as well. You didn't indicate cap rate or NOI. If you expect low rates expect to go full doc.