All Forum Posts by: Matt B.

it sounds like they are trying to put the squeeze on you. That only benefits them.

I might accept those terms, if they accepted an appraisal contingency, but I'd want to have a lot of confidence in the appraiser.

For example: if the property appraises for $XXX  less than the amount of the agreed upon purchase price, then the buyer has the option to buy at $XXX or cancel the contract.  

@Sean Morrisey I saw an empty lot that was being used in the South Loop as a parking lot (30-45 cars I imagine). I ran the numbers - If I recall correctly it was selling for about 5Mil and had a cap rate of about 2.5-3%

I also didn't know they serviced commercial loans. What are Freddie Mac's & Fannie Mae's prerequisites for approval of a commercial loan from your personal experience? @Tony Lin @David Lilley

I'm trying to close a commercial deal (over $10mil） with seller and debt financing, but it's proving to be quite difficult.

good question @George T. I'm in a similar situation myself (negotiated 50% Seller financing on a commercial deal with 100% occupancy) and haven't quite been able to figure it out. If you find a solution, please let me know.

A lot of lenders I speak with won't consider it because I don't have any skin in the game, like many of the BP members had suggested. I was under the impression that 50% Seller financing would come off as a good thing to lenders, since it brings down the LTV% and spreads the risk.

If it's structured in this manner, should we be speaking with a specific type of lender? i.e. banks, private, hard money, equity, etc.. or will it only work if the seller is in 2nd position like @Zach Quick mentioned

Very interesting topic for someone like myself who would like to get into development in the future.

@Zeke Liston if I can get the deal to close it will be XD. Thanks 

I didn't read through all the posts, so I'm not sure if this was mentioned, but cap rate is also a measure of stability. Though I can't say for sure about residential, in commercial if you have a 10% cap rate, some people may see this as risky. For example, if you look in downtown Chicago, a stable area, you're likely to find cap rates between 3.5-5% on most properties. 

@Zeke Liston 18 Mil

@Cody Charfauros  
According to my attorney, who had spoken with their attorney, this bit is in the State owned lease agreements.

This seller surprisingly agreed to 50% seller financing (on a $18MIL property). I thought that would be good since it takes a lot of the risk away from lenders & the property cash flows nicely. That being said, I'm still working on the other 50%

Hi Bigger Pocket members

My name is Matt from Chicago. I'm a new investor working on my first big commercial deal. (Currently negotiating the PA)

I've been licensed as a realtor in the State of IL for over a year now, but I mainly got licensed for educational purposes. I'm more interested in investing in office and multi-family properties. I'd also like to get into development of commercial properties after I've gathered a bit more experience.

Its a pleasure to be apart of the BP community and I hope we can work together on future deals.