All Forum Posts by: Travis Maynard

commercial real estate, i'm looking at buying the building my restaurant is in.

hello all from south carolina, looking forward to learning!

i own a restaurant in south carolina and the owner of the space we rent is willing to owner finance the space. obviously i'm very interested because i'm already paying rent on the space. some details... he's asking 400k (i think we can get him down some), he wants a minimum of 5% down, at 5% down the interest rate will be 9.5%, if we can come up with 10% it would be more like 8.5-9% interest. we pay $3k in rent along with 300 in regime fees which includes water and 3 parking spaces. he would do 10years fixed with a balloon at that time where we would refinance on the equity paid in, no penalties for paying off the principal or paying more than the mortgage payments. this is on main st. in the capital city where a lot of development is taking place and our restaurant is only 6 months old but is doing great. the space is 3,000sqft basement w/ a 300 sqft patio in the rear. is this worth a shot, as a "deed in lieu of sale" deal and risking 10k on the down payment, i think our mortgage will be at least $500 less than we pay in rent right now so we would make that 10k back in a couple years. thoughts? excuse any improper usage of industry terms, i'm new at this. thanks!