BiggerPockets

Two Commercial Properties - Texas: Both properties are under long term lease, have great location and are in very good condition. They have been on the market for $900,000. The owners need to liquidate ASAP as they are in financial trouble with other property. They have accepted an offer of $500,000. Lease income is $12,000 per month. Appraised value is in excess of $750,000.

I'm a commerical loan broker myself and was suggesting Gil try Wells Fargo's small balance commercial division.

Hope that clears things up.

What is the property type?

Gil,

HUD 223F will go up to 92.5% (85% primary and 7.5% seller second.) The CLTV could be higher in certain circumstances.

If you don't get any bank financing, then let me know if you are open to a Private Money equity partner.

Note: My clients are not doing Private Money loans at this time.

Darryl, yes you are picking on me, and you are making VERY personal attacks, but you know I expect that. I don't get much "love" from banks and their reps, and I understand that.

Real estate in the shape it is because of banks and mortgage companies. I am out to educate people about Private Money which means less business for banks and mortgage companies. Check this out: http://www.bankfreeinvesting.com/blog/?p=223

Bank FREE Investing. Get it. . .

Now, if you want to ignore my posts, then that is fine. If you don't, then that is fine as well. :)

Lee

PS: If Gil's property is not an apartment complex then he will tell me. Even if it is not an apartment complex, my investors may just invest in it with their PRIVATE MONEY. Get it. . . Bank FREE Investing. NO monkeying with interest rates for a higher YSP there. No bait and switch.

Lee,

Here's my experience with these low amounts for HUD loans.
Banks are not interested.
The amount of work involved is the same for a $500,000 loan or a $25,000,000 loan. Guess which loan gets the attention?

You may not hear a flat-out NO, but the ensuing silence is predictable, and not helping the client in any way.
I suggest you only consider the HUD Loans once the Loan amount surpasses a couple of million.
And to set the record straight, not every type of transaction in Multifamily gets you 85% to 92.5%.
As you state, the so-called 92.5% includes a Seller Carried Note (not a 2nd Mortgage) of 7.5% to be negotiated out between Seller and Buyer; the Bank does not have a say in the outcome.

The only reason for stating this is to make sure potential investors have realistic expectations as to what is available out there. It would be sad for them to waste your time or their time chasing a dream.
By the way, your website gives a lot of good information.
Congrats!

Louis :D