All Forum Posts by: Darryl Dahlen

If you've been through the loan process before for a residential property, something as small as a 5-unit isn't going to be all that different of an experience.

The appraisal will cost more and the lender will want to see financials on the property, rent roll, YTD P&L, copies of leases, etc. Since most of the items will be things the seller will have to provide, it won't mean all that much added work for you.

This is the type of deal a local credit union or bank should be able to handle no problem. I'd have a sit down with the commercial loan officer at your bank and run this by them to get their feedback.

Ask what sort of terms they can offer for this type of property, the estimated lender/3rd party fees, underwriting times, and a list of documents they will require.

That should give you a good baseline for what you'll need to provide them and what you can expect in return.

If you can get a 30 year loan @5% on a 6-unit you'd be nuts not to take it. IMO, that's a REAL good offer.

I have to ask why do you care what anyone is paying for property that you aren't involved in? It's apparent you have an ax to grind with Chris and Memphis Invest and are using passive aggressive posts to voice your "anti-Chris" message.

What's your goal here? More to the point, who appointed you the babysitter of all real estate transactions in Memphis? What business is out of yours what someone pays for a listing that isn't yours or isn't asking for input on?

These types of posts irk me as there isn't any real benefit to them. The OP often doesn't have a real gripe other than they don't like whom they're posting about and are simply looking to stir the hornets nest by creating negative press.

I believe it has to do with the fact that private funding sources are not the type you would normally find on an internet forum.

From my experience, private money is something you'd find in close proximity to a particular deal, and more often than not, by word of mouth and/or by visiting local real estate investment groups.

While there may be people who look to sources like BP to invest their money, it isn't your typial medium for private money.

Thanks Bryan. I plan on uploading a couple more forms that are used for commercial lending once I get back to my computer (I'm on my laptop today).

I've also thought about uploading the SBA loan forms, but there's 10 of them so they should really go to a dedicated folder.

Congrats Tony! It looks like your hard word has paid off. Please keep us posted and let us know when this deal closes.

If that bill were to pass it would have severe consequences. Who in their right mind would even consider implementing a rule where a business had to service the debt with a DSCR of 1.7?

That's not even close to practical, let alone realistic.

Typically, if the stock falls below a certain threshold for a set number of consecutive days(typically 3-5) you have to kick in the cash to bring it back up above the margin.

There are also programs where you can obtain a line of credit against your portfolio.

There is precious little non-recourse financing for performing assets, and the most aggressive of those loans are HUD's commercial programs, but even those fall short of 100%.

Traditionally, 100% commercial financing is something only the scammers claim to have access to.

Based on the information you've provided, you may run into some problems trying to refinance your property.

The fact the property is at 50% occupancy, and can't serve the debt, is going to be a big issue with lenders. Especially, given the property type.

The fact you want to do a cash-out refinance is going to further compound the issue. To be honest, I don't know of any lenders who would allow a cash-out refinance on a positive cash-flowing office building let alone a non-performing one.

There's such a glut of office space in most markets that lenders are leery of this property type right now. Too many are in the position yours in, and in a lot cases, the NOI doesn't support the debt any longer and/or the property is upside down with regards to its appraised value.

Point being here is that if you find a lender who will let you do a cash-out refinance please share it. You will have truly found the needle in a haystack.