All Forum Posts by: Kacey W

Thanks to all of you. No, the loan is not assumable. We have already tried that, so I just don't see another way to make this happen. I will get on the research and make some calls as well to see if this is a viable option.

Thanks Jon!

Would there be a way to do this without recording title, or raising any red flags with the original lender? I don't want to hide anything, but a way to give the buyer some time until the balloon payment and possible refinance.

Anything I could be overlooking that could cause liability or problems on my part down the road?

I have a commercial property that I have a buyer for. One of our only options would be a mortgage wrap. I have never done a wrap and am not real familiar with it. Can someone give me an explanation of a wrap, what to look out for as the seller, and why I should/shouldn't do a wrap as the seller?

I am starting from scratch here. Is there a Wrap For Dummies book???

I have some concerns with:

1) The current lender calling the note due if/when they find out.

2) What do i do if the buyer defaults?

3) How do we handle insurance with the buyer?

4) Anything else I am overlooking.

Please give me some insight on this idea!

Thanks in advance.

What are banks doing right now if a seller will carry a second on the property? Are they wanting some skin in the game from the buyer?

What terms, etc. would I be looking at if I had a flexible seller that will carry a second on the deal?

How would I structure this to get traditional bank financing in 1st position with as little money down as possible?

Thanks

I have two options with a bank on loan terms that I am deciding on.

1) 15 year AM, 3 year balloon at 6% interest.

2) 15 Year AM, complete 15 year term with resets every 3 year at prime rate + 2.75%.

I am fine with the 15 year Am and 6% to start, but I am not sure what prime will be in 3, 6, 9 years, etc. I don't see why I wouldn't go with the 15 year term and reset and not have to worry about a balloon??

Any thoughts?

This is for a larger commercial property.

Thanks

Thank you guys. We will keep pressing. This has been good for me because I can now really dive into IRAs, and learn that aspect of the business.

Thanks Chris!

One more question, which I don't believe is possible: Can the buyer use IRA funds for the down payment only, and get a bank loan for the remainder?

I feel like this buyer is not real familiar with IRA laws (even less than I am), and because of that, might cause problems with the deal/structure going forward. I am not sure what I can do to help, except possibly move on to another buyer??

Am I, as a seller, responsible for anything regarding a buyers IRA? Is it there responsibility to know what to do legally before we close? Just making sure I am in doing everything correctly as I am not familiar with IRA's and the legalities surrounding them.

Also, with the buyer using an IRA, would this slow down closing times?

Thanks

Does anyone have an example of an executive summary that they have used to secure hard money loans for commercial RE? Looking for a well executed sample, and would like to know what investors like to see, not see, etc., in the summary.

Thanks

Also all numbers are based on selling at an 11% CAP. Can push profit way up at selling lower than that CAP, but want to stay pessimistic when buying!