All Forum Posts by: Gary Northcutt

I don't agree with those who say to keep a mortgage on the property. In fact, to have leverage I believe having it paid off will give me greater leverage because now I'm paying myself instead of a lender and therefore need fewer properties to maintain my income. But also keeps me solvent in rare situations like the pandemic. Therefore, I will do exactly as you and get my properties paid off as quickly as I can. I don't believe in debt anyway so I would go against my own belief if I would do it any other way.

I appreciate what your saying. I don't want any lenders to lose money. I believe in paying my debts, always! I have NEVER had a bankruptcy in my life and do not EVER plan on having one. The only debt I have is on real estate. I don't even have credit cards. I use debit cards. If I don't have the money to buy it then I don't need it! I have excellent credit too!

The numbers I have given are actual true numbers that I have personally seen from tax returns and rent roles from the property management company that I will continue to use after I get it purchased. I have plugged these numbers into the bigger pockets calculator and this is what it gave back to me based on the loan I'm looking to get.

I keep here you guys talking about commercial lenders not looking at personal finances just the property but why does all the lenders I'm talking to want my personal finances and a personal guarantee on the loan? The property I'm buying is an off market deal with a gross rent of $3,065/month (which is below market) with a cap rate of 12.2% and a net profit of $1,000/month (figured using the Bigger pockets calculator). The purchase price is $175,000 and I'll put 20% down. (I haven't been able to find a lender that will do 10% down) This is the first time I have had to obtain a commercial loan and don't completely understand how this all works.

I keep here you guys talking about commercial lenders not looking at personal finances just the property but why does all the lenders I'm talking to want my personal finances and a personal guarantee on the loan? The property I'm buying is an off market deal with a gross rent of $3,065/month (which is below market) with a cap rate of 12.2% and a net profit of $1,000/month (figured using the Bigger pockets calculator). The purchase price is $175,000 and I'll put 20% down. (I haven't been able to find a lender that will do 10% down) This is the first time I have had to obtain a commercial loan and don't completely understand how this all works.