Investor · Huntsville, AL · Member since 2016 · 348 posts · 182 votes
This is more of a reach goal for me since I am still in my "collect 4 green houses before trading up to a red hotel" stage, but I thought I would ask the hive mind anyways. How are deals like this usually structured? First off, when I was doing my Zillow map search, it came up as in MS. I've personally driven this neighborhood and was amazed at how nice and clean it is. Is this a cut and dry 20% down deal the rest through a commercial lender like Wells Fargo or are there better ways to do this?
This is the address: 0 Highway 72, Killen, AL 35645
You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO
You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO
You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO
I agree. It's definitely a bit high. I believe these are all POHs as well.
When you finance through national lenders, in your experience, is a balloon a common requirement for commercial loans of this nature or is it possible to get a fixed rate for 30 years?
You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO
I agree. It's definitely a bit high. I believe these are all POHs as well.
When you finance through national lenders, in your experience, is a balloon a common requirement for commercial loans of this nature or is it possible to get a fixed rate for 30 years?
Yes, I've never seen a commercial loan without a balloon. Some DSCR lender may jump on here and say they do them but I don't like their terms typically.