All Forum Posts by: Derek Young

@Kevin Klein , thank you very much for the contact.... I will reach out to him now!

After exhausting nearly all of my private lending options I have to find a way to scrape up some cash for a down payment on a (4) 1 bedroom apartment + 1 small commercial storefront space in a small town in Indiana.

Could anyone provide me contact information for a lender that I could try to reach out to as I don't necessarily trust all of the Google search results that came up....

Thanks!

@Leon Y. , the sellers are very vague on what they are looking for so I am trying not to offend them with the opening offer but I think they would entertain any starting offer so I might consider that as a starting point.  Thanks!

@Ashton Astillero , yes, I have tried a couple of smaller, regional banks and have had no luck due to the size of the loan on a commercial property.

@Giovanni Isaksen Wow!  Thank you for the detailed analysis!  Two concerns that I have: 1- the appreciation of the building is less than likely not going to happen at that rate in the banks eyes as this is a very old building in a very small town.  Does that change the variables considerably?

2- What would the actual offer be, verbage-wise to the seller in this case?  An 8% interest only loan with a 5 year balloon?

Thank you all for your help!  

Help needed please....

I am n negotiations on a building with one small commercial space (approximately 800 Sq ft which rents for $350) and 4 one bedroom apartments (rental incomes of $330, $360, $410, $450). The building is $75000, insurance runs $1200 and taxes run the same amount. 

I have a down payment of $30k but can't find a lender who will cover the other $45k. The seller Is willing to entertain offers of selling on contract with a balloon payment but I am lousy at figuring out terms to present. Can someone help me come up with a mutually beneficial solution for the sellers as well as my situation? 

Backstory: the sellers are retiring from Indiana and moving to Florida.  They are selling their properties here for cash to be used n the new market. My wife and I have decent credit scores, low to mid 70s and the $30k is the extent of the cash that I can get my hands on.

Thanks @Gerald Harris for the info. The property hasn't been listed long and the family is an older couple is wanting to sell all of their Indiana properties before the winter so they can move to Florida and purchase in their immediate market down there.

I am determined to make this work and hope to get started officially in the real estate acquisition business. Thanks again for the insight!

Hi,

I am looking for a bit of advice.... My wife and I are starting a business in the food preparation and catering industry. We have been searching for a place to prep as it is needed for proper licensing in terms of health department. We have looked into renting commercial space and have been turned away by everyone and have looked into leasing a commercial store/kitchen of our own. Being a person who would like to get into real estate investing full time I would prefer to purchase a place to set up shop.

My realtor turned me on to a property in a suburb of our town which contains a small storefront on a corner spot on Main Street with (4) 1 bedroom apartments as well. All 4 units are occupied and collect rents totalling $1550 per month. The building is listed for $75000 and is an older building (late 1800's but has had updates over the years).

My lender that I have worked with on past 'deals' and our current residence won't do the loan because he does not do commercial lending. I can scrape up the down payment money from various sources (borrowing from parents on some of it so we don't deplete our emergency funds) and have a credit score in the low to mid 700's.

Do you think that I would qualify for a commercial loan for the building?

Thanks guys, I appreciate the insight. I had a feeling that was the case and maybe I was trying to make it feel better than it actually was based on impatience.

@Mark Ferguson, I found your blog a few months ago and have not stopped reading it. Good stuff!

@Derek T. , thanks for the further breakdown on the numbers and the advice.

@Brant Richardson , thanks for the info although it sounds like that would be a bad idea in this case. I will keep it in mind if something else does pop up though.

So I'm stuck and frustrated, can anyone help on some recommendations...

My partner and I have approximately a $20k-$30k down payment for a property and would like to get a quick injection of cash by doing a low risk flip. We have a property picked out listed for $105k (REO) and confident that based on comps it would be a quick sale at $130k and maybe a little more aggressive for $140k. The house is in need of minor cosmetics, carpet replaced with hardwood and minor kitchen and bath remodels. If they would accept an offer of $90k-$95k then we would stand to make a profit of between $15k-$25k.

Is there a way that we can finance this conventionally and finance construction costs or are we out of luck?

I have been working with a mortgage advisor but the only package of products he can offer is the 203k, 203k streamline, and the Fannie Mae Home Path loan which won't let you resell.

If there is no way to do this, then I guess my strategy will have to change %100 as we would not be able to afford a large down payment if we can't find a way to finance the rehab costs somewhere.

Thanks everyone for the welcome, I am stoked to get out and find that 'first' deal.

Thanks Joe.