Financing

I am looking at several 5-8 unit properties where the seller has agreed to carry second of 30% and have checked with a few finance companies that feel they will approve a 70% first assuming everything checks out. Does this seem feasible to go to 100% CLTV? Everything I read suggest money is very tight, but on paper this works and with anticpated rates it may have small positive cashflow. Any feedback would be greatly appreciated.
In Buying Property - Asked by jack l. - Sep 23, 2009
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Answer(s)

Kamron A.
Lender/Mortgage Broker
Los Angeles, CA

I specialize in commercial finance and you will find that most of the lenders willing to go up to 70% leverage will not want a second trust deed for the remaining 30% of equity.
Lenders want to see you have equity in the property these days. Contact me if you have any other questions.

Sep 23, 2009
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Mark M.
Owner/Investor
Norristown, PA

Depending how you structure the 30% repayment and how well you negotiated the deal down, this could be a GREAT deal!

Sep 23, 2009
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Keith R.
Lender/Mortgage Broker
Norfolk, VA

There is no 100% lending out there at this time.

Sep 24, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

See if the lender will still lend once you tell them about the second.
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Oct 23, 2009
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