All Forum Posts by: Chris Connery

Hmm... that really sucks. I’d tell you to just keep calling around but I’m sure you’ve already done that. It always annoys me when the banks place these minimums, and it really makes no sense why they do it.

what the hell is a village tax? 

6% is extremely high. Standard would be around 1-2%. Seller concessions are meant to offset closing costs which I can’t imagine for you are anywhere near 6%. I’m not sure if you’re buying cash or using banks but lenders typically will not allow the seller concession to cover the down payment. Meaning if closing costs are only 2% and you have a surplus of 4%, that extra concession can not be put toward the down payment. 

your commercial lenders discrimate between Multi-family (over 4 units) and true commercial properties?

Or were you referring to multi family as 2-4 units?

this is a f&@king weird thread....

That may not be completely necessary. LLC's can be formed in a matter of hours to days depending on how you go about setting up the operating agreement between you and your partner.

I would not let this stop you from finding deals. My only point was that you and the person funding your deals need to have an exact understanding as to what each others roles are in the deal and what interest you both have in the property. Typically, your partner would also have equity. 

From what you described... in your best interest would be to keep them as a private lender and then just pay them a favorable interest rate on the money they loan you. But if they’re looking for refinance money that won’t work. Then you’re back to a partnership. 

@John Ross Valderama

I hope for your “partners” sake that he has a great lawyer to guide him through this.

From what you described, unless your plan is to royalty screw him over, you guys should form a partnership. 

I’m not sure where to start exactly. Your first lien holder bank will definitely want to know why this person is lending you down payment money and what their interest is in the property. 

You really need to consult an attorney and have this done correctly. Not the type of agreement you make on a wink and a handshake.

yes I would agree with @Joel Owens

Is the property truly zoned commercial..

I work a lot with first colonial community bank in NJ. I know they lend PA and NJ, not sure about NY but I’ve used them for loans less than 200k. 

The north east is typically tenant friendly states. SO in my opinion it’s every landlord for themselves.

@jeff 

@Jeff Kehl

Exactly my experience. I’ve never come across a bank that wanted to let you walk away with a deed with no money down, Atleast not one of this size. 

I’m assuming you’ve done your homework and if you found one that will, more power to you and send me their number ; )