Say the property was $200,000. And through an LLC can I finance the $200,000 as a new LLC without any company credit or assets. Say that they want %10 down also. Could I personally garauntee the $20,000 myself and lend that to the LLC. So then the LLC can make the down payment. So if i did it that way could I then finance the other 90% with the LLC. Cause I was always under the immpression that commercial rental properties are not valued like a home. That the loan is based on the actual property itself(the value of the building). So the loan amount wasn't based on assets that the LLC already had, but that it could be based on what the building was worth. Please help. thankyou
2007-08-11 07:58:57 · 5 answers · asked by Mike C 1 in Business & Finance ➔ Renting & Real Estate
closing fees and transaction fees realy has nothing to do with it. You can get the seller to pay or you can finance them in with the building. thanks though
2007-08-11 08:07:52 · update #1
There are a couple of things you an do to acquire this property. None of which is without coming up with a down payment and you have to have cash, unless the current owner is gonna take back the financing themselves.
Most lenders want to see a down payment of 20% or more for any entity to purchase a commercial property.
If the LLC has no credit history or money in the bank chances are you will have to personnally guarantee the loan yourself
(Called a Re-course loan). Even if you placed any funds in the bank account of the LLC it has no banking history or what is known as seasoned funds.
The LLC also has no history of earning any money, so it can not prove how it can repay the loan,under any circumstances.
We are now at financing the loan. With your 20% down and you placing the property in the LLC's name you would have to guarantee the loan personally for the other 80%.
You may use the LLC's checks to repay the loan, thus giving it some history.
What is your reasoning for wanting to do this property this way? Are you attempting to establish credit for the LLC? If so there are other ways of accomplishing this.
Building corporate credit is like building personal credit, it takes time and baby steps.
Who do you know will lend a 18 year old high school graduate $200,000 with no credit history, no job, or means of paying back the loan?
The same applies to a corporation.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-11 08:41:50 · answer #1 · answered by loanmasterone 7 · 0⤊ 0⤋
Never heard of a no money down finance on a commercial place, in general require a least 20% down
2007-08-11 08:18:53 · answer #2 · answered by goz1111 7 · 0⤊ 0⤋
Most likely not and it's always impossible because you still have tons of closing fees and transaction fees.
2007-08-11 08:03:31 · answer #3 · answered by Johnny N 4 · 1⤊ 0⤋
Rent To Own Homes : http://RentToOwnHome.uzaev.com/?COZt
2016-07-12 03:45:53 · answer #4 · answered by ? 3 · 0⤊ 0⤋
I HOPE NOT
2007-08-11 08:07:38 · answer #5 · answered by Bettee62 6 · 0⤊ 0⤋