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All Forum Posts by: H. Jack Miller

H. Jack Miller has started 20 posts and replied 229 times.

Post: NO LOAN DISCLOSURES IN COMMERCIAL LENDING?

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

Its the same thing, some people call it a term sheet and some a commitment letter, either way I would get something in writing with all details spelled out, before you give anyone a Penny or watse any time on it.

Post: Flood factor - Is it a deal breaker?

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

Its not good, I would check to see if its in a flood zone and the cost of flood insurance and factor that in

Post: Vacant Commercial Property

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

contact them......

Post: New Member Introduction

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

Nice to meet you, I am somewhat new here as well, but been in commercial lending and CRE investing for well over 30 years.

Post: Needing advice on when to scale up

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

I would take it slow, more investors implode from indigestion then starvation, they grow to fast. Make sure your on very solid footing, also keep in mind if you have something that works don't feel pressure to grow or change.  Do it on your terms and not because of any pressure 

Post: NO LOAN DISCLOSURES IN COMMERCIAL LENDING?

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

Any real lender should be able to issue you a written term sheet with all of the terms clearly spelled out. If they won't I would move on to someone who will.  Don't "Trust" anyone in this business. Everything needs to be in writing. 

Buying properties at action is a risk v reward thing. Some auction companies will provide this is they have it, but you run the risk there is a problem and the owner are not disclosing it. You need to make the call, DD costs can add up fast on properties you don't close on. But there are things you can do to mitigate the situation, most states have data bases with  environmentally impacted properties, you can see if this property or anything close by is on it. Also you should try to understand what the prior uses have been, this will give you a clue, as well I would look at what the properties neighbors are and you can get a good idea of the likelihood of if there is an issue there. As I said its risk v reward, but you can do things to mitigate your risks   

Post: Commercial property in need of complete renovation

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

good luck with it, the one thing you left off is what's the after completed value.

A word of caution, be very careful with contractors in general and in planning always plan for cost over runs.

Good luck with ut

Post: Debt to Service Loans

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

Debt service coverage ratios are usually used on income producing properties to measure the property and its value 

Post: Hard Money vs Private Money?

H. Jack MillerPosted
  • Lender
  • Boca Raton, FL
  • Posts 249
  • Votes 133

Its the same thing, some call it private lending some call it hard money lending, the names change every few years, it used to be sub prime and before that non conforming lending. Bottom line its the same thing what ever you call it,