All Forum Posts by: Vinod Dasani

@Fas McO'nen - This is not my first commercial loan.  Wells Fargo is offering a promotion on Commercial loans until end of this month where you don't have to pay any origination fees (typically 1% of the loan amount) in case you are interested and are forced to go down the commercial loan route.   

@Fas McO'nen - I wouldn't suggest going through the hassle of re-zoning not to mention the cost involved.  I have heard about wanting to re-zone from Residential to Commercial but not the way around :)

I am in Houston as well and currently shopping for a commercial loan.  I have worked with a few banks and have been offered anywhere from 4.99% to 6.0%.

@CJ Witmer - You can try the following options:

1. Other banks including Credit Unions
2. If you are maxed out personally try using the LLC to secure a the financing which is already cash flow positive. Some banks may need more history but its worth trying with different lenders
3.  Hard Money Lenders (who are generally less restrictive), 
4. Line of Credit on the existing property as well.  

Finally, partnering is also an option but if you have trust issues I wouldnt even go down this route. If you are able to find good deals consider re-assigning the contract for a fee. This way you can get additional income in the LLC

@Erin Liggins -  I would be interested in future deals that you may have but as already mentioned in this deal the renovation costs you have (at $10) is pretty low given that you mentioned it needs quite a bit of work. 

@Christopher Montgomery - There is a difference between when a property has already been foreclosed on and in pre-forclosure.  My understanding is that when a property is foreclosed then all other liens are wiped out (if the amount is less than what is owed on the 1st lien).  Thus, in your case if the property has already been foreclosed (as you indicate in your post) then all other liens are null and void.  Also, during a Title search if there are any liens you will find out just in case you have any doubts.

@Account Closed - Yes, the process would be similar and you would get funded at closing.  If you have an option between the Cash buyer and Hard Money borrower (all other terms being the same) I would pick the Cash buyer.  The Cash buyer basically has the funds ready to buy whereas the Hard Money borrower is still dependent on the 3rd party for funding.   Not a big issue but still something to consider especially if terms for both are exactly the same.

if the seller has a loan they cannot offer seller financing on the property is what I was referring too.  And I don't believe that is incorrect.  The title will not be transferred in buyers name until the loan is paid off

@Jerome Morelos - Typically, banks will lend based on the Appraised value or Purchase price whichever is lower when you are purchasing a property (there are exceptions). The LTV in those cases will be 65% of the Appraised Value or Purchase Price (generally whichever is lower).

However as Sean mentioned each lender is different and they do offer different options. 

@Jerome Morelos - LTV = Loan to Value

This is basically what the lender is willing to lend.  Basically, this is the ratio between the value of the property and the loan amount.

@Brendan L. - I know I am not answering the question you raised as you have already got replies and suggestions from other BP members in regards to it.  However, since the seller is asking for an extension and if you like the property I would use this to drive a bargain from the seller (lowering the price etc).