My wife and I currently rent a building for our business. We've been in business for nearly two years and would like to begin exploring the option of buying. The landlord says the current FMV is $3 million but he tends to exaggerate so we may be able to get it for less. What are the best options given the fact that we need the longest term possible to keep the mortgage payment below our current rent payment.
2007-03-05 13:08:51 · 6 answers · asked by fighting118 1 in Business & Finance ➔ Renting & Real Estate
You can start the process by getting an appraisal to give you some compts on the property. This will put you in the ball park as far as the FMV of the property.
Normally the lender on a commercial property want about 15%-20% down though if your credit scores are really high I have seen them require a little less.
Contact a commercial lender to find out the fees and other cost that might be incurred in the purchase.
Contact your tax consultant for his/her input.
The other thing what type of legal umbrella are you working now, an LLC or corp, non-profit? Is it strong enough to purchase without personal guarantees from you or will you have to personally guarantee the commercial loan. If the corp have enough in the bank and can prove sufficient income, then you probably will not need to personally guarantee the loan.
Make sure you fill out the loan application in the name of the corporation.
Normally commercial loans are amortized or 30 years but are called and due in10 or 15 years.
I hope this has been of some use to you,good luck.
"FIGHT ON"
2007-03-05 19:05:55 · answer #1 · answered by Skip 6 · 1⤊ 0⤋
I'm a loan officer for a mortgage company that has been in business for 16 years. We do deals like this all the time and I am sure I can help you out here. I will need a little bit more information so send me an e-mail and we can get started. If I'm licensed in your state then I can get this deal done.
2007-03-05 23:36:27 · answer #2 · answered by Amber J 2 · 0⤊ 1⤋
Even with a balloon payment your monthly payment will probably exceed $30,000 a month. I have not done any real figures, but am basing that on $1,060,000 loan that I did a while back for my daughter. Her payment is about $18,000 a month.
If you think your business will support that feel free to call me at
1-877-206-8772 and I can give you some real figures.
Ask for Cindy
2007-03-06 09:18:01 · answer #3 · answered by Cindy 3 · 0⤊ 1⤋
Sorry to say but, you need personal evaluation of this scenario. I would love to help or point you in the right direction, no pressure. My contact is listed below.
Cheers,
Humphrey
------------------
Humphrey Mitchell
Co-Chairman/CEO
Turbo Home Loans Inc.
303 5th Avenue Suite 1809
New York, N.Y. 10016
Direct: (917) 337- 8670
Fax: (212) 213 - 1257
Licenses mortgage bankers in NY, NJ, CT, CO, MD, IN and FL. Direct lenders.
United Home Mortgage Incorporated d.b.a Turbo Home Loans
www.uhmtg.com
2007-03-05 21:30:47 · answer #4 · answered by REALTY EXPERT 1 · 0⤊ 1⤋
I work for a mortgage co. and we handle commercial properties. We deal with hundreds of different lenders to get you the lowest rate. If you would like to contact me please email me here on yahoo. I will gladly have our commercial rep give you a call at your convenience with the ins and outs of purchasing the property, terms and payment quotes. The advice is free.
2007-03-05 21:25:00 · answer #5 · answered by Kris 1 · 0⤊ 1⤋
I can get this loan. Contact me whenever possible.
513-860-2940 ext 10
msmith@premierloangroup.com
Martin Smith
2007-03-06 10:18:02 · answer #6 · answered by Martin S 1 · 0⤊ 1⤋