My name is Keefe Shanahan and I am a Senior Loan Advisor at apartmentloanbiz.com. I'm here to help investors, real estate agents, & residential loan officers by extending advice and service in any way possible. Happy investing!
Senior Loan Advisor
Hello. I haven't seen too many commercial lenders here. It will be good to have you around for all of our questions. Just wanted to say hi! :D
I would love some help.
I need to buy out a sibling on a building that was deeded to me with a mortgage of 20K left on it. The building is worth about 350 -390K maybe slightly more. Its a 2 unit, 1 restaurant building in boston.
Unfortunetly, the building doens't generate alot of income and I am under the impression that commercial loans are for 10years only....doesn't seem doable for me.
I can't sell the builidng cause I've had it less than a year but my sibling wants to be bought out now!!!!
So, I'd like to take out 100k (for him), 20K (to pay off the current mortgage), 15K (to generate a fund for the building)....so about 135K total.
I am a complete newbie at this, but the fees and hidden costs are really detracting me from moving forward..
can someone honest help me out on a course of action, or a decent gameplan?
I can understand your apprehension. There can be various fees associated with a commercial loan. But, these fees are largely the same as you would encounter on a residential home loan. You have appraisal fees, title fees, and lender processing fees. Our company always gives free loan comparisons to each potential client AND each one of these loan comparisons includes a mini-good faith estimate of closing costs.
First of all, your property would be classified as a mixed use property. And, it is a very unique one at that... due to the presence of a restaurant. Secondly, in commercial finance, loan terms and loan amounts are highly contingent upon property financials. Lenders want to make sure that a property can pay its own mortgage payments. If you want to get out at least 135K and the property is worth 390K you're going to need a 35%LTV(loan to value). I would have to see some financial figures on your property before I can determine whether it will support a 35%LTV. But, I can tell you that a 35% LTV is relatively small and your property should therefore have a very good chance of qualifying for such an amount. Also, all commercial loans are NOT 10 years only. Depending on the situation, we can offer 6 month adjustables or 1 year fixes. If you'd like more information please feel free to contact me via phone or e-mail. My company works with over 40 different lending institutions nationwide. If you can send me some financials on your property I can do some research among my lenders and send you a loan comparison that will include various options you can take.
Senior Loan Advisor
I'd like to get Mr. Shanahan's advice on this property if he is still around...
I'm trying to understand what would be available for this 6 unit complex I'm looking at.
List price of $119,900. Most recent annual taxes are approximately $6k annually. Each unit is 1 bd 1bth (which works well for particular area). Each unit rents out for approximately $400 per month which is easily $100mo less than market (however, they are ALL rented which is good).
I have a lot of resources but I don't understand exactly what loan would work best for me. It is a desirable property and I'm not sure how long it will last. Any initial advice is greatly appreciated.
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