All Forum Posts by: H. Jack Miller

I think just about all banks will require a PG- Personal guarantor who can support the debt, most will require as everyone said anyone with more then a certain % to be a PG. but that can be negotiated. There is more flexibility with private lenders and some even without a PG if the property and LTV was strong enough

I would compare it to other NNN deals, the credit of the tenants and the terms of the leases. Also keep in mind that the Fed has raised rates by .75 bp and it looks like there maybe 100 bp more. So I would be carful of a 6 cap, as with the movement of rates a Market cap is a moving target. on the other hand if your happy with a 6 cap and have a long time horizon, go with it. Just know the market may move

LLC is the way to go

It comes down to time horizon. If you can hold on for a long time and don't need to sell then you can withstand market turbulence. the shortsighted ones get into positions where they cant wait for a market to recover. 

Typically a bank or a credit union would be the cheapest cost to you, they also usually are the hardest to get and take the most amount of time. I would explore that first and then if not a non bank commercial lender. It sounds like its a typical deal, its a quesion of cost of capital, Loan to value and how hard to get

 sounds like a fantastic deal, if your looking for capital to buy it, i would love to look at the debt and or equity. As far as value usually these are valued based on a cap rate. of course the quality of tenants  and length of the lease are critical .

Excellent advice , as well I would closely supervise and double check their work

As long as there is a lot of capital in the markets the rates should not change. But that could change very quickly. at @Geltfinancial we have lowered rates, because we have a big appetite, but you never know things can happen very fast.

I am sorry your in this position, its all to familiar and I hear similar stories by others. The best option if you have it is to finish the project using your own money without borrowing it, if possible. If you can sell it without taking a loss is another option, I am not sure how you lease it being only 75% done. but if you can that would be great. i am not sure the economics but if you can bring in a capital partner that might work, but if underwater I am not sure how easy that will be. not sure who the lender is but may want to go to them and see if they will advance you money to complete it, but that has its own risks.