All Forum Posts by: Darwin Crawford

@Christian Beebe - had this same problem, wound up going to a loan broker (local) and LendBase (not local), got decent term sheets from both.  Loan was Sub $500k.  Local banks who don't re-sell these are typically your best bet, they like relationships.  You'll pay a bit more in points/fees but if the deal works, they can get it done.  

@Account Closed - one tactic that I have used in this arena is to NOT look for off-market deals, but look ON the market, and get better at negotiation. To date, three of my best purchases have been off the MLS or LoopNet.

Was it hard work?  Hell yes it was.  The last one was 6+ months of negotiations, but I got a screaming deal AND owner carry in one of the hottest zip codes in town.  

The effort that many people put into "finding" deals off market can (sometimes) be better applied to negotiating a good deal on the market.  At the end of the day, who cares how you got a good deal as long as you got it?  

@Oren K. - just get on google maps in your target MSA and the 5 closest MSA's, and search dollar store, then make a list of the tenants next to them.  If a pattern pops up.....

@Edita D. - all the above are good suggestions, I'd add "Wheelbarrow Profits" by Jake & Gino (also on this forum), it helped me a lot with my last purchase.  

@Jonathan Jewell - there are some mezzanine type guys in the commercial world that will look at DSCR and cash flows, as well as condition. They typically use an ARM type structure, and you'll be paying in the 7% range for "lite-doc" packages, but if you bought right, it works well.

Certain banks have certain "no-fly" zones, I got a hard "no" recently on a great property because the loan committee won't take anything built pre-1990....go figure.  

I have ZERO affiliation with either of these guys, but SilverHill funding and Velocity Mortgage are decent places to start, or an online broker such as LendBase.  

At the end of the day, the more rocks you kick over, the better a deal you'll find.  Good cashflow and time are valuable allies to have in this game.  It seems like the main thing that gets the lenders going is when you don't actually need the loan.  Go figure!

@Josh Williams - if you have financials and rent rolls, I'd like to take a look at them.  This fits the profile of what I'm looking for.  [email protected]

thank you

@Brett Kaye - do you fund commercial property? I am looking for a re-fi on a C-class commercial in 85251. I don't need to close it until this time next year. LTV appx 50-55%, can you do fixed-rate products? Have full doc packet and very high DSCR. (2x+).

@Moshe H. - I had quotes anywhere from 65% to 75% LTV.

@David Hamilton - that was kind of my suspicion, although being honest, I don't blame them.  I have decided to wait until the 13th month of ownership to refinance the property, and weigh the possibility of pulling cash out versus just self-funding the improvements and then reaping the monthly gains.  It's not a large sum, less than $30k on a $500k property, but it would be nice to not have to write that check all at once. 

I see where they are coming from, cash-out refi's can be hazardous unless there are very strong fundamentals on building/owner finances.  

And sure, I'd be happy to speak with you about it, who knows maybe we can put something together next year.  PM me or feel free to call.  

@Christopher Giannino - I got the "nice job on the deal but we use purchase price for LTV for the first year of ownership" talk from 3 lenders.

So I went back to the seller, re-negotiated the financing for 18 months, and will visit this again next spring.  

However, I have heard others share different experiences.  In my very limited experience, commercial is heavily "deal-dependent".  

@Fred Shank - a national, which might explain some things....I went to a local credit union to see what they could do, as I like the fact they don't re-sell their loans, but since the building is a pre-1985 build, its class C, and they aren't writing any more of.  

That being said, there are a few local banks that I didn't bother reaching out to.  I did get one term sheet from a national-level broker that was 5.25% with a 25yr Am and 3/5/7/10 yr rate lock options that wasn't half bad.  

My main goal at this point is to try and pull a little equity out for energy upgrades, including mini-split AC's and a rooftop Solar array.  The local utility here has annoyed me enough that I'm willing to spend to not give them the revenue, and the payback on those systems is pretty solid at this point (5 years with 25 year warranty).  

I'll check with the local guys and see what they say, thank you for the suggestion!