All Forum Posts by: Ed LeGrand

I'm considering buying a primary residence with an FHA loan which means I'd have ~96% LTV. Would that high LTV negatively affect a commercial property loan--meaning would I be required to have have a higher down payment for the commercial building to compensate for the highly leveraged SFH? I know there has to be a certain LTV ratio among a portfolio but I'm not sure if primary residence is relevant. Thanks for any help.

Thanks for the feedback!

Properties are worth about 200k each. My credit score is in the mid 700s.

I only have hard money out on the second property. It is accusing interest and their is no payment required. It’s money from a family member. I purchased the property in February and used the money as a bridge loan to purchase the property and make repairs for the non-profit tenant who was interested in a long term lease. The intent was always to refinance.

The first property had a seller carryback at 7% interest. I purchased it 5 years ago st 165k and I currently owe 125k. I have an upcoming balloon payment and while I’m sure I could talk him into modifying the agreement, he is getting older and I would prefer to cash him out to not be doing business with his estate.

I spent a combined 20 years in food services - as an investor, I would not touch a food related franchise. Primarily because of the number of employees & inventory required.

A service business is another story - no/minimal inventory, can be "regular" hours - build a book of business that feeds itself via referrals. Pest control, alarm, and various inspections come to mind.

As with all investments, due diligence is critical. "Don't believe the hype" and make a business decision based on your skill set, interests, and goals.

Real estate taxes, insurance, common area maintenance charges.