I`m interested in purchasing a small semi-commercial building (one retail on the ground floor with an apartment on the second floor) but the best loan my bank can offer me is a 15 year amortization period and 65% of the purchase price! Are there financial institutions offering longer amortization period and more than 65% for semi-commercial properties?
Amortization period and minimal down payment on a semi-commercial building!
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QUOTE (quotealex @ Aug 24 2009, 11:25 AM) I`m interested in purchasing a small semi-commercial building (one retail on the ground floor with an apartment on the second floor) but the best loan my bank can offer me is a 15 year amortization period and 65% of the purchase price! Are there financial institutions offering longer amortization period and more than 65% for semi-commercial properties?
shop around .. but these type of very small buildings are VERY hard to finance .. and as such 65% LTV and 15 year amortization is what is normal and to be expected !
Did you ask the seller to give you a VTB for 20% for 5 years @ 4% ?
shop around .. but these type of very small buildings are VERY hard to finance .. and as such 65% LTV and 15 year amortization is what is normal and to be expected !
Did you ask the seller to give you a VTB for 20% for 5 years @ 4% ?
QUOTE (thomasbeyer2000 @ Aug 24 2009, 10:48 AM) shop around .. but these type of very small buildings are VERY hard to finance .. and as such 65% LTV and 15 year amortization is what is normal and to be expected !
Did you ask the seller to give you a VTB for 20% for 5 years @ 4% ?We are working on the VTB portion of the deal, and he is not willing to go below 7% for now.
Did you ask the seller to give you a VTB for 20% for 5 years @ 4% ?We are working on the VTB portion of the deal, and he is not willing to go below 7% for now.
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QUOTE (quotealex @ Aug 24 2009, 01:48 PM) We are working on the VTB portion of the deal, and he is not willing to go below 7% for now.
ok .. adjust price accordingly ..
seller AND buyer have to agree !
no one is forced to sell .. and no one is forced to buy !
What is the income on this asset ? What city ? what CAP rate ? where`s the upside ? what`s the overall condition ?
Is the commercial floor leased ? what $/ft ? how long ? with a strong tenant and a personal guarantee ? what is teh risk of commercial tenant defaulting on lease ? Would you know how to evict them ? did you see the lease yet ? did you have it ana;yzed by a lawyer that knows commercial leases ?
ok .. adjust price accordingly ..
seller AND buyer have to agree !
no one is forced to sell .. and no one is forced to buy !
What is the income on this asset ? What city ? what CAP rate ? where`s the upside ? what`s the overall condition ?
Is the commercial floor leased ? what $/ft ? how long ? with a strong tenant and a personal guarantee ? what is teh risk of commercial tenant defaulting on lease ? Would you know how to evict them ? did you see the lease yet ? did you have it ana;yzed by a lawyer that knows commercial leases ?
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QUOTE (investmart @ Aug 25 2009, 09:21 PM) Thomas, a general question: is 75K/apartment in a Plex 2 hours from Toronto too expensive? pls assume each unit`s rent is $750/mo and it`s a good top city to invest in. Thanks.
seems OK, more or less .. but it depends on sub-location, suite size, building condition ...
seems OK, more or less .. but it depends on sub-location, suite size, building condition ...
QUOTE (thomasbeyer2000 @ Aug 24 2009, 02:32 PM) ok .. adjust price accordingly ..
I got an offer from another bank for a 20 year amortization term and 65% of purchase price but they wont accept any vtb nor second mortgage on the property. Looks like it`s hard finding good financing on semi-commercial properties!
I got an offer from another bank for a 20 year amortization term and 65% of purchase price but they wont accept any vtb nor second mortgage on the property. Looks like it`s hard finding good financing on semi-commercial properties!
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QUOTE (thomasbeyer2000 @ Aug 26 2009, 08:53 AM) seems OK, more or less .. but it depends on sub-location, suite size, building condition ...
Thanks Thomas. I`m used to paying less per unit but this one is in a better location and better condition and newer. Still, a difficult decision since due to the price net income per unit (while positive) will be lower than previous purchases. Regards, Neil
Thanks Thomas. I`m used to paying less per unit but this one is in a better location and better condition and newer. Still, a difficult decision since due to the price net income per unit (while positive) will be lower than previous purchases. Regards, Neil
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QUOTE (investmart @ Aug 26 2009, 05:40 PM) Thanks Thomas. I`m used to paying less per unit but this one is in a better location and better condition and newer. Still, a difficult decision since due to the price net income per unit (while positive) will be lower than previous purchases. Regards, Neil
hard to judge without detailed numbers, location, pictures, rent rolls, ..
hard to judge without detailed numbers, location, pictures, rent rolls, ..