All Forum Posts by: Eric Davis

With our cash reserves being fairly limited right now, is the only true option to get our LTV down? Or in other words, if we can get a LTV of 60-70% then would our minimal cash on hand not be too much of a problem?

Cash flowing monthly or breaking even while we put "free" equity into the property are both options for us. So should we focus more on low LTV and cash flow since we do not have cash on hand?

The property we are looking at now is asking $500,000 with about $6000/month in rents. (3/4 units are locked up long term, at least 3 years) Comps in the area are around $550,000. At the end of the December, $1200 in rent is gone since they are not renewing their lease. Would it be smarter to lowball heavily before the lease runs out or make our adjusted offer after the vacancy?

Thanks so much for the replies so far and I look forward to any other info. I would also think that NNN leases might not be a bad option for us either since we really just want to lock them up so that we don't have to always be worrying about filling the vacancies.

John, is there any other options we should look into being that we are cash strapped at the moment? It looks like NNN would be the best for our needs but we could be approaching this incorrectly. I also like the seller financing option but how much would refinancing a commercial loan cost me if I needed to get the cash out of the property to pay off the seller in a year or two?

Commercial properties really interest me since the funding is more based on the deal itself. Now obviously cash is going to still be needed but I really like the prospect of going "deal hunting".

A friend and myself can pool 40,000 to 50,000 to be used to purchase a property. So my question is this, realistically what range of pricing should we be looking into?

We have found a few properties where we could get close to that 70-75% barrier but these are on properties that are in the 800,000s. We do not want to buy a great property to only get burned when we can't make repairs early on etc...

So seller financing is a must for us. What other things can we look to do? I would assume finding properties where we can secure NNN leases would be the best but is not hugely popular in our area. The only other thing I've heard work is to get an energy efficient loan where they will front the costs of a couple of solar panels since you can factor the savings into the equation.

So anyone care to share things that they use or could try out? We're just looking for creative ideas to make the most return on our money and want to be very careful with our first property. Thanks guys!