Need help from lenders

1 Reply

I'm looking at a couple of NNN properties and would like to have the ability to make a solid offer on them.My problem is I don't have the funds for a down payment.The properties have 20 year leases and the annual rents will easily cover the debt service.

I'd like to know how to access down payment funds that are ACCEPTABLE to the bank.I've spoken to a couple of brokers who say it's very difficult.One suggestion is I could find equity partners and form an LLC.I was wondering if there were other ways like private investors,angel investors etc..that would be an acceptable form of down payment to the bank.

Thanks for your help

You can do a cross collateralized loan with a commercial lender if you have a relationship and your money is kept in that banker's bank. Loan loss ratios are high right now and they are more cautious than ever.

Don't forget the new rules on having reserves for each property you own as well as a down payment. They all want 20-35% down and if you give them a first mortgage on a property you own outright they might take that instead of the cash. Has worked in the past but very tight now.

Large bank I'm in process with now 75% LTV, full doc, six months reserves on all properties and the subject property. They want one year leases not month to month as well.

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